ShareThisMost homeowners have a "tomorrow" project or two - you know, the things put off until there's a little extra cash or a lot more time. They mean to get to it; they just haven't yet.
This year might be the time.
As part of the economic stimulus plan, the federal government is offering tax credits for a wide range of energy-efficient products.
Figuring out what qualifies, and what makes the most sense for your situation, will take some time, but the homework is worthwhile. The tax credit is equal to 30 percent of the price of products outlined in the plan, with a combined cap of $1,500. (Some higher-priced items, such as solar water heaters, are not subject to the cap.)
"Any project that costs $5,000 or less will get the maximum percentage paid for by the tax credit," says Richard Ham, president of Richard Ham Construction in St. Petersburg, Fla. "Improvements like insulation, solar water heaters and (heating and cooling) change-outs, door and window replacements and roofing improvements in homes of the smaller to average size will get the most benefit."
The improvements won't necessarily come cheap - in some cases, the qualifying products are significantly more expensive than alternatives - but you may be able to catch a tax break and replace a woefully out-of-date air-conditioning system at the same time.
"We're estimating that 80 percent of (window and door) products out there will not meet the standards," says Bill Phillips, a director of merchandising and marketing with Home Depot. "You're talking about the cream of the crop with these products."
Manufacturers, he says, are working to reconfigure their products so they meet the standards but are more affordable. The qualifying products are "kind of a moving target, if you will," he says. "Everybody is trying to figure out how to make more affordable products" that qualify.
Some of the larger suppliers are already highlighting their stimulus plan products. Owens Corning Insulating Systems, for example, has step-by-step instructions that illustrate what products to buy and what forms to take to your tax professional at insulation.owenscorning.com.
Don't feel as if you need to do everything at once. Some of the higher-priced products have a longer time frame - until 2016 - to get the work done.
And, as Sherri Shields of the Florida Solar Energy Center points out, it doesn't help to have a top-of-the-line, energy-efficient heat pump if you have leaky windows.
"The lower energy you can consume, the less equipment you have to buy," she says.
If you're not sure where to start, ask your power company to conduct a free home energy rating, or find an independent contractor that you'll pay. The rating assesses how your home consumes energy and helps pinpoint the most cost-effective changes you could make.
Here are just some of the products included in the plan; you'll find more at energystar.gov. The standards that must be met to qualify for tax credits can be confusing, so be sure to do your research - and talk to a contractor or supplier - to figure out if an upgrade is right for you.
- Windows and doors: The up-charge for a standard-sized window from standard impact glass to low-e (low-emittance) insulated Energy Star compliant impact glass is approximately $80 per window, depending on the manufacturer," contractor Richard Ham says. "Of course, smaller houses will have a larger percentage of the cost paid for by the credit, but all houses will benefit from the energy savings. Windows are one of the largest energy wasters, according to the Florida Solar Energy Center."
Tax credit: 30 percent of cost, up to $1,500 for all improvements combined. Labor and installation are not included.
Roofing: All Energy Star-labeled metal and asphalt roofs qualify. The roof must be expected to last five years or have a two-year warranty.
"Using Energy Star 3-tab shingles (white only) is a no-brainer here because the cost of the shingle is about the same as the standard shingle," Ham says. "The total job cost for the small- to average-sized house is likely to be less then $5,000, meaning that the tax credit will pay for 30 percent of the total cost. You also get the benefit of energy savings in the form of decreased cooling costs."
Tax credit: 30 percent of cost, up to $1,500 for all improvements combined. Labor and installation are not included.
Insulation As of now, tax credits apply to insulation added to walls, ceilings and floors. The insulation also must meet the 2009 International Energy Conservation Code.
"Insulating your attic is fairly cheap (about 40 cents per square foot for R-30), yields substantial energy savings and the government is going to pick up 30 percent of the entire cost," Ham says. "If you don't have at least R-30 in your attic, just do it."
Tax credit: 30 percent of cost, up to $1,500 for all improvements combined. Labor and installation are not included.
(Distributed by Scripps Howard News Service www.scrippsnews.com)
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