Home Remodelers Can Gain $1,500 in Tax Credits

Homeowners can benefit from newly expanded federal tax credits for energy efficiency by upgrading their homes! Claim up to $1,500 in tax credits by remodeling your principal residence to reduce energy consumption through the enhanced Existing Home Retrofit (25C) tax credit. The types of projects that may qualify include adding insulation, replacing doors and windows and updating heating and cooling systems. This is a great way to benefit from lower energy bills, while getting paid to make improvements!

Another Tax credit is available for alternative energy sources! The Wind, Solar, Geothermal and Fuel Cell Tax Credit (Tax Code Section 25D): Tax credits are available at 30% of the cost, with no cap through 2016 (for existing homes and new construction) for Geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells. If you have been thinking of ways to “get off the grid” now is a great time to investigate further!

All of these energy-efficienct home products must be “placed in service” between Jan. 1, 2009 and Dec. 31, 2010. The credits are only valid for improvements made to the taxpayer’s principal residence, except for qualified geothermal, solar, wind property, which can be installed on any home used as a residence by the taxpayer.

Homeowners should claim the 25C and 25D credits on Form 5695 when they file their income tax returns. Check with your tax professional to ensure correct application of the energy-efficiency tax credit. Also make sure to save all receipts and records related to your purchase and installation.

Learn more about how to plan a remodel and hire a professional remodeler at www.nahb.org/remodel.