Home improvement season is here and your
Better Business Bureau offers advice on how to take advantage of tax credits offered by the Federal government while increasing home energy efficiency and helping the environment at the same time.
The American Recovery and Reinvestment Act of 2009 includes several new tax and expanded credits that homeowners can take advantage of while increasing the energy efficiency of their home. According to Remodeling Magazine's 2008-2009 Cost vs. Value report, energy-efficient replacement projects are some of the best bets for recouping money at resale. Qualifying improvements range from putting on a new roof to installing a wind or solar energy system.
To qualify for tax credits, improvements must typically be made on the owner’s primary residence. Keep in mind that just because a product has an ENERGY STAR seal — the Environmental Protection Agency’s standard for energy efficient consumer products — it doesn’t mean the purchase qualifies for the tax credit.
For the following home improvements, a household can take a tax credit for 30 percent of the improvement cost up to $1,500 total for all improvements made:
Windows and doors including energy efficient skylights, storm windows, exterior windows, storm doors and exterior doors;
Roofing and insulation including metal or asphalt shingles;
Heating and cooling systems including energy efficient central A/C units, oil and gas furnaces; and
Water heaters including energy-efficient gas, oil, or propane water heaters and electric heat pump water heaters.
A full list of qualifying home improvements is available at
www.energystar.gov/taxcredits.
The BBB advises that homeowners find a company or contractor you can trust by requesting BBB Reliability Reports at
wynco.bbb.org. The reports will show if the business has a good rating and is BBB accredited.
Homeowners should get several estimates for projects. And before making any improvements, visit
energystar.gov to confirm that the products being used are eligible for the tax credit. Also consider consulting the IRS Web site at
irs.gov or a tax professional.