Tax Credits for Green Remodeling: What Qualifies?
When it's time to remodel your home, why not go green? There has
never been a better time to turn to eco-friendly appliances and
materials! Not only does green remodeling help the environment,
certain home improvements can lead to a nice tax credit or deduction--and that puts
more green in your bank account.
Which appliances and improvements qualify for tax credits?
- Heating, Ventilating, and Air Conditioning
Units. Some HVAC products, such as air source heat pumps,
central air conditioning, natural gas or propane furnaces, oil
furnaces, boilers, and advanced main air circulating fans can
qualify for the tax credit. Your HVAC contractor can tell you which
models meet the requirements.
- Insulation. Upgrading your insulation can lead to a tax credit as
well, but keep in mind that installation costs are not included in
the eligible amount.
- Windows and Doors. Energy-efficient windows, skylights,
and doors can bring in a tax credit. An alternative to replacement
is to use storm windows and storm doors, many of which might also
- Roofs. Credits are available for
roof products that reflect the sun's rays, such as metal roofs
with pigmented coatings or asphalt roofs made with cooling
- Water Heaters. Older water heaters
use an enormous amount of energy to heat the water in the tank.
More modern options, like a tankless water heater, are better for
the environment and your bottom line.
- Solar Power. Solar water heaters,
solar panels on the roof, and
other solar elements can bring in a nice chunk of change when tax
time rolls around.
- Biomass Stoves. Stoves that burn
wood, crops, trees, plants, grasses, and the like are considered
healthier for the environment, and the credit for the stoves does
include the installation cost.
- Geothermal Heat Pumps. These pumps
draw their energy from the ground instead of the air, and can be
used to both heat and cool a building, plus provide hot water.
- Wind Turbines. Small wind turbines
use kinetic energy to supplement or run your home's electrical
system. The wind turbine must provide a capacity of no more than
100 kilowatts to qualify.
- Residential Fuel Cells. A very
fuel cells are not yet the most popular option for homeowners,
but they do represent the cutting edge of the hydrogen
Most tax credits expire at the end of 2010, but the credits for
solar energy, geothermal pumps, fuel cells, and small wind turbines
qualify until the end of 2016. So if you're ready to go green, now
is the time!
About the author: Shannon Dauphin is a
freelance writer based near Nashville, Tennessee. Her house was
built in 1901, so home repair and renovation have become her
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