Taking Advantage of the Energy Star Tax Credit

Energy Star Tax Credits are Available to Those Improving Their Home

Sep 30, 2009

Thanks to Congress passing the American Recovery and Reinvestment Act, homeowners can improve their homes and get a tax break on the cost right now.

Many homeowners have been worried about losing their homes in the current economy, and it has become a secondary thought to improve those homes. Due to this climate, many Americans may be missing the chance to get a very nice tax credit on home improvements and renovations. Right now there are several federal tax credits for making a home more energy efficient, and these Energy Star tax credits are applicable to just about any homeowner.

What is the Energy Star Tax Credit?

Currently the Energy Star tax credit states that making a home more energy efficient will save consumers money to the tune of up to 30% of the cost of certain products. This tax credit is there to help people find the initiative to improve their homes, and at the same time make their homes more energy efficient. In the broad scheme of thinking, by more people making their homes energy efficient, they then use less power to run those homes. That power can then be used in other locations, and in many instances, it will actually save the consumer more money in the long run.

What Qualifies for the Energy Star Tax Credit?

The Energy Star Website does the best job at breaking down everything that falls under the tax credit, but there are quite a few items that qualify. There are currently tax credits available for windows, doors, insulation, roofs, HVAC systems, water heaters, and biomass stoves. These tax credits are available at 30% of the cost, up to a total of $1500.00. These are the tax credits that are available for 2009 & 2010, but there are some additional ones that will last longer.

For those homeowners really looking to take the next step in home improvement, there are a set of products that will receive a tax break until 2016 that have no upper limit. These include geothermal heat pumps, solar panels, solar water heaters, small wind energy systems, and fuel cells. The same 30% tax credit applies to these products, but there is no maximum amount that can be spent or saved on these purchases, making them very appealing to some homeowners.

How to know which Products are Energy Star Tax Credit Eligible

If the plan is to take advantage of the Energy Star tax credit, most products will already have that designation on the packaging. The companies want homeowners to buy their products, and are doing everything possible to let people know that their product qualifies for the tax credit. If it isn’t quite clear what the specific qualifications are for each product, make sure to take a look at the tax credit specifications page to become familiar with the ins and outs of the program.

Reasons to take Advantage of the Energy Star Tax Credit

The biggest reason that homeowners want to take advantage of the Energy Star tax credit is that it is most likely going to save them money in the long term. By having a house that is more energy efficient, it is going to keep the home cool in the summer and warm in the winter. The improvements will cut back on the costs associated with running the air conditioner or the furnace, and will keep the home at a more comfortable level. With the 30% tax credit being offered right now, it makes the home improvements more affordable, and for those homeowners already planning on making changes, it provides an added benefit to use Energy Star products.

The copyright of the article Taking Advantage of the Energy Star Tax Credit in Home Renovation/Repair is owned by Ryan Gamble. Permission to republish Taking Advantage of the Energy Star Tax Credit in print or online must be granted by the author in writing.