Going green pays and saves. According to a study by the Joint Center for Housing Studies of Harvard University, for every dollar decrease in annual home energy expenditures, house values increase between $11.63 and $20.73.
Also, going green can lower the tax bill. New federal tax credits are now available for green home improvements on a principal residence. Qualifying modifications must meet a certain energy efficiency level to be eligible for the credit.
The credits are available for improvements purchased and in service from January 1, 2009, through December 31, 2010. The amount of the credit is deducted from any income taxes the homeowner may owe. The credit is nonrefundable, allowing taxpayers to lower their tax liability to zero, but not below zero.
Tax credits are available at 30% of the cost, up to $1,500, in 2009 through December 31, 2010 (for existing homes only) for:
- Windows and Doors
- Insulation
- Roofs (Metal and Asphalt)
- Heating, Ventilating, and Air Conditioning (HVAC)
- Water Heaters (non-solar)
- Biomass Stoves
Tax credits are available at 30% of the cost, with no upper limit through December 31, 2016 (for existing homes and new construction) for:
- Geothermal Heat Pumps
- Solar Panels
- Solar Water Heaters
- Small Wind Energy Systems
- Fuel Cells
Make sure you purchase products that come with a Manufacturer Certification Statement — a statement from the manufacturer that indicates the product qualifies for the tax credit. For record keeping, experts advise that homeowners retain all receipts.
Additional details can be found at www.energystar.gov/taxcredits and www.homedepot.com/taxcredit
Also feel free to contact a Warren Residential Group agents at contact@warrenre.com or call us at 617-848-9616 to find out more!
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