Energy Incentives for Home Improvements

The American Recovery and Reinvestment Act of 2009 (ARRA) is designed to inject more then $780 billion into the economy over the next several years. Homeowners who make qualified energy-related home improvements could receive tax credits.
Areté Renovators is summarizing for you some provisions of the ARRA below.

Windows and Doors

Heat loss through windows can account for anywhere from 10% to 25% of a homeowners’ heating bill (source U.S. Department of Energy).
To qualify for “energy efficient” under ARRA window or door must meet U-factor and solar heat gain coefficient standards. It is estimated that only 15% to 20% products on the market meet those standards.
Check the label of the product your buying or go to directory of certified products:
www.nfrc.org

U-factor measures resistance to heat flow on a 0 to 1.2 scale. To qualify for tax credit, a window or door’s U-factor must be 0.30 or less.
Solar heat gain coefficient (SHGC) measures how well the window blocks heat from the sun. To qualify for the credits, the SHGC must be 0.30 or less.

If you are considering replacing windows or doors on your primary dwelling you could save up to $1500 by consulting with your remodeling contractor and tax advisor.

Insulation

Insulation provision of the ARRA is simply 30% of the cost of the materials only, up to $1500 per household for work performed this year and next. Since labor is excluded, your invoice needs to separate materials and labor. Materials used for insulation must be expected to remain in use for at least five years or have a minimum two-year warranty.

HVAC

An average house needs a 70,000 BTU furnace and a 2.5-ton air conditioner, which cost around $5,000. A qualifying air conditioner or furnace might cost an additional $2,600. However, the tax credit applies to both the materials and installation of HVAC systems up to $1,500 maximum. If the homeowner accounts for energy savings per month, he or she can clearly see the long-term benefit. For a directory of products you can visit the Air-Conditioning, Heating and Refrigeration Institute at http://www.ahrinet.org/


For more information about other remodeling projects that could qualify for tax credit you can visit the Energy Star web page:http://www.energystar.gov