energy tax credits
10 Must-Have Features for Your Home
Attractive Stone Flooring, A Design Favorite
The global economy has greatly influenced home design, giving life to some unexpected trends. Consumers are building and buying homes that are smaller, smarter and greener; quite a contrast to the bigger-is-better, lavish-excess of recent years.
Whether you are planning to build a new home, buy or remodel, you should familiarize yourself with these emerging trends, which appear to be here to stay:
Energy Efficiency is Key, Smarter is Better
- ENERGY STAR Appliances—Stylish, up-to-date kitchen appliances can make a great impact on your home’s visual appeal. But even more importantly these days—they can also save you money. With energy tax credits and the money you’ll save over time on utility bills, adding energy efficient appliances to your new home has never been so important.
- Water Catchment Systems—Incorporating native, drought-resistant plants into your landscaping is great-looking and good for the planet. But did you know that you can make your yard even greener by installing a rainwater catchment system. Gutters deliver rainwater into insect and bacteria resistant barrels, which can later be used for watering gardens and several other non-drinking purposes.
- Energy Saving Building Includes—With utility costs on the rise, homeowners are looking for houses that are well insulated and sealed from the beginning. Drafty, leaky houses are costing too much to maintain, and using up too much energy to heat and cool.
- Tankless and Solar Water Heaters—Another way to quickly run up your monthly bills is by paying to much for those winter-defrosting hot baths. Solar heating systems make great, natural use of existing sunshine to heat your hot water, leaving you paying for just those not-so-sunny days.
- Natural Flooring—Bamboo, cork, wood and stone have long been favorite flooring choices of interior designers, but did you know that they also help create a healthier, chemical-free environment in your home.
- Outdoor Rooms—With rarely used, formal living rooms becoming a thing of the past, outdoor living and dining spaces are quickly taking over. Some popular features include large, space-heating stone ovens, built-in seating made of natural materials and huge, welcoming dining tables.
- Smaller, Smarter Spaces—Bigger-is-better is a mindset of the past. Huge homes with extra rooms mean higher monthly bills, and lower spacial efficiency. Homeowners are instead choosing open and accommodating floorplans.
- Smarter Storage—Built-in kitchen islands, perfectly organized garages and tons of closets can help make better use of your square footage. Too little storage means clutter and large furniture pieces to accommodate closet overflow. But adding extra storage into your build means seamlessly making room for all of your belongings.
- Smart Home Systems—If you knew how much energy it was actually using, you may be more likely to turn that light off when you leave the room. Smart Home Systems not only allow you to heat and cool based on the times of day that someone is home, but they can also tell you just how much power is being used at a given time.
- Front and Side Porches—Outdoor spaces add square footage and traditional attractiveness to your home. Whether you’re enjoying a summer evening out front under a ceiling fan or rocking in a chair watching the sunrise, front and side porches enhance your home’s welcoming curbside appeal.
Window Labeling for Tax Credit Eligibility
Will your Energy Star windows, doors and skylights meet this year’s newer, more stringent requirements? Your green home builder will be able to help you select the most energy efficient products for your home, but it’s not a bad idea to familiarize yourself with these important new labels.
Earlier this year, new performance requirements went into effect on all ENERGY STAR windows, doors and skylights. Knowing how to identify these labels when purchasing your new energy efficient products is vital to making good investments and ensuring eligibility for tax credits.
Red and Black Labels
ENERGY STAR Red Label
There are two new ENERGY STAR labels to watch for. The label shown at right was rolled out in October of 2009. Appearing in either red or black, this label identifies window, skylight and door products which will no longer meet the high-efficiency ENERGY STAR standards effective April 1, 2010.
Blue Label
ENERGY STAR Blue Label
The new, blue label will help you identify ENERGY STAR products that are eligible for tax credits up to $1,500 when installed in 2010.
To ensure the highest level of energy efficiency and tax credit eligibility in your ENERGY STAR purchases, it is always important to consult your green home builder.
Home Remodeling and Energy Tax Credits
Energy efficient replacement windows in a home remodel can earn energy tax credits.
Conserving energy through the use of “green” products might not have been at the top of your list a few years ago, but thanks to the 2009 economic stimulus bill the government has made it financially beneficial to homeowners to work toward energy efficiency. Tax credits are available unlike ever before to homeowners who are planning a home remodel with green appliances and practices.
The 2009 economic stimulus bill improves upon pre-existing credits in a big way:
- 2009 tax credits are now in effect until 2010
- The 10% tax credit is now 30%
- Tax credits that were once a specific amount are now converted to 30% of the cost of materials
- The maximum credit is now $1500 instead of $500 and is for all improvements combined for the 2009-2010 period
- Certain home improvements, including geothermal heat pumps, solar water heaters, and panels are not subject to the $1500 maximum
Asheville remodeling contractors such as Brock Builders can perform a home energy audit to outline the areas that will benefit most from installing energy-efficient appliances and insulation systems. By installing a variety of energy-efficient items from the following categories, you may be eligible to claim a tax credit of 30 percent:
- Biomass stoves
- Exterior doors, skylights and windows
- HVAC
- Roofing (metal and asphalt)
- Storm doors and windows
- Water heaters (nonsolar)
Tax credits are also available at 30% of the cost, with no upper limit through 2016 (for existing homes and new construction) for the following categories:
- Fuel cells
- Geothermal heat pumps
- Solar panels
- Solar water heaters
- Small wind energy systems
The new tax credit does have a discrepancy, however, when it comes to windows. Energy Star windows purchased before June 1, 2009 are eligible for the tax credit of 30%, but not all Energy Star windows purchased after June 1 will qualify. To meet the requirements for the tax credit after June 1, the windows in your remodel must be super-efficient windows with a U-factor and solar heat gain coefficient (SHGC) less than or equal to .30. According to Energy Star’s website, most of their windows will not meet the requirements for the tax credit. These confusing standards are being reviewed by the American Architectural Manufacturers Association (AAMA), who are urging Congress to reconcile the stimulus bill standards with Energy Star criteria.
In order to qualify for the tax credit, all products must have a signed statement from the manufacturer certifying the product meets the standards for the tax credit. The Manufacturer Certification Statement isn’t required to send in with your tax return but must accompany your receipts and records. It is recommended by the National Association of Home Builders (NAHB) to save all receipts with the contact information of each manufacturer, the make and model of the product, and the manufacturer’s statement that the product meets the tax credit standards.
Whether you plan to do a basement, bath or kitchen remodel, hiring a general contractor familiar with these tax credits ensures your home remodel is earning the highest credits possible, the proper appliances and products are purchased and installed, and the specific records you need are organized. When helping the environment while saving money, everybody wins.
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