ENERGY UPGRADES can YIELD TAX CREDITS!

If you’ve been putting off energy-efficient home upgrades, now may be the time to take on some home improvement projects.

Thanks to the American Recovery and Reinvestment Act of 2009, you've heard about new incentives for consumers to eliminate outdated, inefficient building systems that affect residents’ comfort and pocketbooks.

The stimulus bill expanded and extended the tax credits for the home improvements that had expired in 2007. That means through 2010, consumers can claim a 30 percent tax credit for costs of buying things like new windows, furnaces and insulation. The lifetime cap is $1,500. (Before, consumers only could claim 10 percent of the costs and the cap was $500.)

Among the common home projects covered are:

• Exterior windows, including skylights and storm windows;
• Insulation, exterior doors and roofs, including sealants to minimize air infiltration (caulk, weather stripping and sealants), and storm doors
• Central air conditioning; heat pumps; furnaces and boilers; and water heaters.

Because there are certain quirks and deadlines associated with what does and doesn’t meet the guidelines, you have to be careful looking at what exactly qualifies.

Homeowners able to make more significant investments may want to consider some longer-term energy solutions, such as:

• Geothermal heat pumps
• Solar photovoltaic cells
• Solar water heaters, and fuel cells

They’re eligible for the 30 percent tax credit and there’s no maximum cost.

Again, it’s important to understand all the criteria to receive full tax benefits.

Resources:

• Alliance to Save Energy: offers an easy-to-follow guide on the available tax credits
• Energy Star: offers information and a Q&A about the Federal tax credits.
• Flex Your Power: lets you search by zip code for energy-efficient rebates and incentives in California
• The Database of State Incentives for Renewables & Efficiency: is another source for information on California-specific financial incentives for energy upgrades.

Looking to buy or sell property with a proven Realtor: Call today: 858-245-6709