Green Home Improvements Can Ease Your Tax Bill
We love housing tax credits around here, almost as much as we love innovative ways to build a sustainable environmental future for the Dallas-Ft. Worth area.
So here are two tax credits that can both make your home more energy-efficient and lower your annual tax bill at the same time.
Non-Business Energy Property Credit
Energy Property Credit , the Non-Business Energy Property Credit actually expired after 2007, but has been reinstated to help spur green housing initiatives. The tax credit lets you claim non-business energy property credits of up to 30 percent of the cost of some energy-efficient equipment installed in 2009, including green property like high-efficiency heat pumps, hot water heaters, and air conditioners. Improvements like energy-efficient doors, windows and insulation, some asphalt roofs, and stoves that turn biomass into fuel also might qualify.
- Labor costs for installing the high-efficiency upgrades can also be included in the 30 percent.
- The total amount of credit homeowners can claim combined in 2009 and 2010 is limited to $1,500. In other words, $5,000 worth of energy-efficient additions can get you there.
- This specific credit applies to existing homes only.
- Improvements made during 2008 don’t apply.
Residential Energy Efficient Property Credit
This credit also covers 30 percent of what the homeowner spends on more advanced green elements. Officially called the “Residential Energy Efficient Property Credit,” this means equipment like wind turbines, fuel cells, geothermal heat pumps, solar water heaters and electric systems.
- Labor costs can again sometimes be covered.
- Unlike the Non-Business Energy Property Credit, there’s no cap on this credit (except for fuel cell property costs).
- Both existing homes and new construction apply.
- Check out the Department of Energy’s Energy Star site to find out for sure which Energy Star labeled products will qualify.
Both credits are good for the earth, and good for your wallet. Contact one of our Texas home loan and mortgage experts for more information, or to ask about a Federal Housing Administration Energy Efficient Mortgage (one more way to both save and sustain).