The National Association of Home Builders (NAHB) recently issued a handy fact sheet detailing the type of home improvements eligible for the $1,500 tax credit.
Homeowners can qualify when installing new energy efficient items on their home until Dec. 31, 2010. Items that qualify range from upgrading your insulation to installing new heating and air conditioning, replacing doors and windows and installing roofing systems that improve energy consumption.
Some products don’t qualify
The tax code (Section 25C) states that the credit is available for 30 percent or up to $1,500 for a lifetime limit. If you’re in the process of building, this is not something you can apply towards your building costs as it is specifically intended for existing principle homes. One thing to beware of is that not all Energy-Star rated products qualify for the tax credit, so check their Web site before you buy. Also, it prohibits most installation costs so keep that in mind when shopping.
Skylights and wood-burning stoves
Among the items included that don’t ordinarily come to mind are skylights, smart vents or whole house fans and wood burning stoves and fireplace inserts. I know what you’re thinking: Wood burning stoves? In this valley? Yes, Martha, the manufacturers have vastly improved them to the point that some meet the federal requirements for efficiency and most importantly, the tax credit. This is also an exception where the installation can be included so long as it is a requirement from the manufacturer to ensure safe functioning.
Short sales and you
So how does all this relate to short sales? Well, if you’re in the process of purchasing a short sale, it might not be a bad idea to keep energy efficiency in mind when doing your inspections. For example, if you find that the home you are considering needs new windows and your budget doesn’t allow for that after closing, there are loans structured specifically for that need. Rolling the costs into the loan keeps cash in your pocket and the tax credit will help at the end of the year. Lenders who specialize in home improvement loans can walk you through the process.
Get proof
One last thing to remember is to ask for the manufacturer’s certification that the item qualifies for the tax credit. The items installed must also meet the requirement that they remain in use for at least five years. For more information go to NAHB’s Web site at www.nahb.org/remodel.
Beth Mergens is a broker associate with RE/MAX Gold in Folsom. She can be reached at Beth@FolsomLakeHomes.com.
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Why heat with wood?
1. Wood is a renewable energy resource. Renewable means you don’t run out. Renewable means you don’t deplete the earth’s resources. Wood is energy from the sun, stored by the tree as it grows. When you burn wood you are releasing this stored energy. In the dark of winter, it’s like having a bit of summer sun on your hearth.
2. You’re in charge. Stop writing checks every month to the energy utilities. Take control by heating with wood. In our climate, staying warm is right up there on the list of the most important things in life. Do you really want to leave something so important in the hands of a faceless corporation?
3. No more freezing in the dark. The big, centralized energy sources are not very reliable. When a storm interrupts the electrical supply, all the conventional heating systems are useless; the fancy heat pump falls silent, the gas furnace can’t work. But the wood stove or fireplace keeps you warm and cozy and safe.
4. Warms you like no other. The radiant heat from a stove or fireplace is like the rays of the sun. It warms you through and through. Come in from the storm and stand near the fire rubbing your hands together. It’s one of life’s small pleasures.
5. The romance of the flame. Sure it’s a cliché, but that doesn’t make it any less true. The soft glow of the fire is the favorite setting for an intimate conversation. It’s the place where friends and family gather to talk and laugh in comfort.
6. Raise your energy I.Q. Flick the switch, turn up the thermostat. Now, what did that cost? What impact did it have on the natural world? You’re in touch when you heat with wood. That arm load will last the day. That log you placed on the fire is a tangible measure of the cost to the environment of keeping your family warm.
Information from woodheat.org.
