Benefits of Building Green
Homeowners who choose to go the “green” route with their homes are starting to reap the benefits. Where green building was once a seldom heard term, it is now common place for homeowners to use these techniques to improve their home’s efficiency.
If you are thinking of adding green technology to your home, make sure to check into the many tax credits that are available to both home owners and buyers. The two main green building tax credits currently available are:
1. Wind, Solar, Geothermal and Fuel Cell Tax Credit: Available for both existing homes and new construction, home owners can receive a credit up to 30 percent off the cost of their improvements between Jan. 1 and Dec. 31 of this year. Qualifying green updates include geothermal heat pumps, solar panels, solar water heaters, small wind energy systems, and fuel cells.
2. Qualified Energy Efficiency Improvements: You can earn a 10 percent tax credit for purchases that were “placed in service” between Jan. 1 and Dec. 31, 2011. According to the National Association of Home Builders, “the maximum credit for a taxpayer for all taxable years being $500, and no more than $200 of such credit may be attributable to expenditures on windows. This rule means that taxpayers who have claimed $500 or more of this tax credit in prior years, particularly 2009 and 2010, can no longer participate in the program.”
These tax credits were put in place to help offset the costly upfront investment that is common with some of these eco-friendly options. In the long run, these updates will help you save money as well as save the environment. Plus, homebuyers look favorably on home efficiency, which might help you sell your home faster in today’s market.
Be sure to check with your local officials to see what tax credits are available in your area!
By Tisha Gay