Home Improvements Can Mean Green Tax Credits

January 29, 2009

Residential

Basic Repairs and Replacements Can Net You Green Tax Credits

Basic Repairs and Replacements Can Net You Green Tax Credits

In this unstable and challenging economy, we’re all looking for ways to save money.  We seem to be helping out Uncle Sam an awful lot.  So it got me thinking…how is Uncle Sam gonna “bail” me out?  Not sure if I’ve found the answer, but I did learn about a few tax credits that may help put some green back into your wallet, and at the same time help to stimulate the economy.  What’s amazing is that you may be planning to do a lot of these improvements anyway to save on heating costs. You might as well get the tax savings as well. Here’s what I learned.

What Qualifies for Green Tax Credits?

Uncle Sam is offering to let you keep some of your money through tax credits for green upgrades to your home.  This is somewhat old news?green tax credits have been around since 2006?but the tax credits have recently been expanded.  Starting January 1, 2009, the Emergency Economic Stabilization Act makes it possible for homeowners to benefit from tax credits for energy efficient home improvements (windows, doors, roofs, insulation, HVAC, and non-solar water heaters). Take a look at Energy Star.gov for all the details.  Home improvement tax credits are now available for home improvements placed in service from January 1, 2009 through December 31, 2009. Any qualified home improvements made in 2008 are not eligible for the tax credit.

Home improvement tax credits are available for:

  • Insulation
  • Replacement windows
  • water hears
  • high efficiency heating and cooling
  • biomass stoves

This chart has all the information broken down for you. The maximum amount that a taxpayer may claim from all of these home improvement tax credits combined is $500 over the lifetime of the tax credit (2006, 2007 & 2009).

There are other ways to save by going Green, they are offering tax credits for:

As with all tax credits, there are detailsyou need to know. So please visit energystar.gov for all the specifics. I hope you can gain a little dough with all of the efforts. In this day and age, something is better than nothing.  All in a good day’s work.

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About Lisa Gregg

Lisa has been in real estate since 2005. Her strengths and expertise are in contract management, marketing, and coordinating. She supports the Robert John Anderson Group at Baird & Warner, maintaining a long tradition of being in the top 1% of Chicago Realtors®. Lisa loves spending time with her husband and two growing boys (who she can't call little anymore), being outdoors, spending time with friends?new and old?all while doing her part for the environment. Lisa can be reached via email lisa@robertjohnanderson.com or on facebook.

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3 Responses to “Home Improvements Can Mean Green Tax Credits”

  1. Lisa Gregg Says:

    I have an update to this article, based on the American Recovery and Reinvestment Act of 2009. This Act has several provisions that will benefit home buyers and the housing market. It extends the tax code section 25C credit for energy-efficient home improvements through the end of 2010. It increases the credit rate from 10 percent to 30 percent!, while raising the lifetime cap from $500 to $1,500. It also expands the list of eligible improvements.

    I just found you $1000 more dollars my friend!

Trackbacks/Pingbacks

  1. 11 Tax Tips for Homeowners and Buyers | The Chicago 77 - March 16, 2009

    […] Greening your home earns you a $500-$1500 tax credit; home improvement tax credits are now available for home improvements done from January 1, 2009 through December 31, 2010. Any qualified home improvements made in 2008 are not eligible for the tax credit. […]

  2. New Energy Efficiency Tax Credit Rules | The Chicago 77 - March 17, 2009

    […] NEWS FLASH!  President Obama signed a stimulus bill!!!  What?!  OK, talk about old news…but it has grander tax implications for Americans.  The American Recovery and Reinvestment Act of 2009 (ARRA) has some significant changes to the energy efficiency tax credits. […]