Who says it’s not easy being green? The federal government is currently hosting more green tax-saving programs than ever before. With housing starts as unstable as a pineapple on a pinhead, it’s time for builders to get creative. Learn how to load your toolbox with a host of energy and money-saving tips that will make you more marketable to potential clients.
Below, I’ve listed a few of the highlights of the fed’s green tax credit program. Look for even more coverage in the coming weeks.
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Biomass Stoves The economic stimulus bill includes a 30% tax rebate for the purchase of any biomass stove with a thermal efficiency rating of 75% or higher. |
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Electric Heat Pumps Purchase any electric heat pump (both air and ground source) carrying the Energy Star label and you’ll be eligible for a tax credit up to $1,500. |
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Furnaces and Boilers Efficient oil, natural gas and propane water boilers and furnaces are eligible for a 30% tax credit, providing they meet the following criteria: • Furnaces must have an Annual Fuel Utilization Efficiency (AFUE) rating of 95% or more. • To qualify, water boilers must have an AFUE rating of 90% or more. |
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Solar and Wind Energy Through 2016, solar and wind energy systems earn consumers a 30% tax credit with no cap. |
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Windows and Doors Consumers installing qualifying energy efficient windows and doors within th next two years are eligible for a 30% tax credit |
For more information on environmentally friendly building techniques that can save your clients money and perhaps add more to your own wallet, be sure to visit our Green Building Guide. And for a state-by-state breakdown of various incentives geared at promoting renewable energy, builders and homeowners alike can consult the Database of State Incentives for Renewables & Efficiency (DSIRE).
Help Us Help You
There are a multitude of various state-by-state green energy incentives that homeowners can tap into. Feel free to share your own stories and suggestions in the comments section. We’re counting on your feedback.
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View Comments
I'm building right now and looked into these credits. Read the fine print and I'm pretty sure the credits do not apply to NEW home construction, only remodels.
Feel free to send a link showing me I'm wrong.
Hi Dooman, sorry for the delayed response - I was busy getting married this weekend.
Anyhow, while IRS Code 25C was indeed targeted at existing homes and expired in 2007, it was reinstated by former President George W. Bush near the end of his second term.
The latest credit program, 25D, saw increases in the amount of the credits and are geared towards new construction as well as remodel jobs.
The tricky part comes when taking into account the various caps on these credits and how they work. Some aspects are capped individually, some are capped in groups, some have no caps, some expire sooner than others. It gets a bit confusing but I'll be working to get more information out there in the near term.
In the end, it's all pretty interesting stuff!
Best,
Ed