July 15, 2024

Home Improvements — Going Green

Green Home Improvements

There has been a lot of talk about the Emergency Economic Stabilization Act of 2008,. But do you know what it means for you? If you use energy-efficient products in your home, the law expands and extends valuable federal tax credits for homeowners who make certain upgrades.

Benefits include lower home energy bills, increased indoor comfort and reduced air pollution.  In addition, the energy-efficient products eligible for the new federal tax credits actually lower the amount of federal income taxes that taxpayers must pay Uncle Sam. Here’s a look at how much you could save if you took advantage of some of  these tax credits (but remember that your energy savings each year may be greater than the one-time tax savings):

Purchase

Tax Savings

Notes

Central air

conditioner or

heat pump

$300*

Only some

Energy Star

products qualify.

Furnace or boiler

$150*

Only some Energy Star products qualify.

Windows

Up to $200*

All Energy Star

windows qualify.

Insulation and

sealing

Up to $500*

Must meet model

building code

as installed.

Ground-source

heat pump

Up to $2,000

Only Energy Star

products qualify.

* Maximum of $500 total for home improvements.

In some areas of the country, consumers also will be eligible for utility or state rebates or state tax incentives for the same homes, vehicles and equipment.

Source: Alliance to Save Energy

 

Home Improvements — Going Green