RESIDENTIAL HOME IMPROVEMENT CREDIT
Thinking of fixing up the old digs? Doing so may save you some taxes. Here’s the deal.
This thing called ARRA (The American Recovery and Reinvestment Act) Section 25C tells me that if you install new qualifying insulation or exterior windows and doors, metal roofs (including skylights) and various and sundry way efficient heating and cooling systems you can garner yourself up to a $1,500 federal credit. (Inquire about possible state credits based upon where your home is located.) Well the dollars aren’t huge, however remember, you will be saving on the monthly utility bills. And oh-by-the-way, you will sleep the sleep of the righteous and true.
Also exciting is ARRA Section 25D. (I live for this!) Here you are going to get credit for state-of-the-art residential green energy systems such as solar- and wind-generated power systems. Note too that these credits apply to rental and vacation homes as well. Some of the systems that qualify are geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells. My buddy who lives up in the Sierras tells me that solar water heaters (he uses them to heat his floors as well) work just fine through most winters.
If you’re thinking of building a new home or doing a major remodel, ask your architect about LEED (Energy and Environmental Design) standards and what credits and advantages can be had for “going green.”
Let’s talk electric meters. That thing with all the funny dials that no one knows how to read has been up-dated. Go digital! If monitoring how much electricity you’re using impresses you as a good thing, digital is the way to go. By evening out your electricity usage, your utility bills will go down. This because the power companies often charge according to the maximum demand made during each billing period. Lower the maximum and you lower the bill.
It’s all good (and green too).
