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Home Improvement Tax Benefits, 2010

By
Real Estate Agent with United Real Estate DC Metro Region (703.216.5635) cheryltee47@gmail.com

Tell your clients, going green pays and saves. According to a study by the Joint Center for Housing Studies of Harvard University, for every dollar decrease in annual home energy expenditures, house values increase between $11.63 and $20.73.

Also I found out that going green can lower the tax bill. New federal tax credits are now available for green home improvements on a principal residence. Qualifying modifications must meet a certain energy efficiency level to be eligible for the credit.

The credits are available for improvements purchased and in service from January 1, 2009, through December 31, 2010. The amount of the credit is deducted from any income taxes the homeowner may owe. The credit is nonrefundable, allowing taxpayers to lower their tax liability to zero, but not below zero.

Tax credits are available at 30% of the cost, up to $1,500, in 2009 through December 31, 2010 (for existing homes only) for:

  • Windows and Doors
  • Insulation
  • Roofs (Metal and Asphalt)
  • Heating, Ventilating, and Air Conditioning (HVAC)
  • Water Heaters (non-solar)
  • Biomass Stoves

Tax credits are available at 30% of the cost, with no upper limit through December 31, 2016 (for existing homes and new construction) for:

  • Geothermal Heat Pumps
  • Solar Panels
  • Solar Water Heaters
  • Small Wind Energy Systems
  • Fuel Cells

Make sure you tell your clients to purchase products that come with a Manufacturer Certification Statement - a statement from the manufacturer that indicates the product qualifies for the tax credit. For record keeping, advise that homeowners retain all receipts.

Additional details can be found at www.energystar.gov/taxcredits and www.homedepot.com/taxcredit

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Serving all areas of Prince William, Fairfax, Stafford, Alexandria, Arlington and Spotyslvania Counties. Guiding you through the process of purchasing or selling residential property.                 

                                                                                                                   

 Cheryl Thomson, Realtor ® | 703.216.5635 | cheryltee47@gmail.com | Jobin Realty | 9327 Main Street, Manassas, VA 20110

 

            

 

 

 

 

                                                                                                                                                    

 

 

                                                                          

Carla Wade
Charlotte, NC

This is great info to pass on.  Thank you.

Mar 10, 2010 01:43 AM
Anonymous
Heather Lord (KW Charleston SC)

Cheryl

Great post - I was just having a conversation with a client who was considering the installation of energy effecient windows... I was not sure of the specifics concerning possible tax credits but now I have the information ..

 

Many thanks - I plan to pass this along.

 

Cheers  Heather

Mar 10, 2010 02:21 AM
#2
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Thank you Cheryl.  I would advise my clients to consult their accountant, however.

Also, certain states and utility companies offer additional rebates/credits and I always tell my clients to check with them.  Everyone is interested in the cost and return on their investment besides helping the planet.  If they can get a 30% tax credit AND a 50% rebate from their utility company, their return time for monthly savings becomes very short.  My neighbor recently went solar and his return on investment will be less than 2 years. 

Mar 10, 2010 02:23 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Great job outlining some of the financial incentives for going green!

Mar 10, 2010 02:29 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Cheryl,  At a savings between 30 - 35 % it really becomes an incentive to have the upgrades done.

Mar 10, 2010 04:39 AM
Nora Shaide
Menomonie, WI

This is a great incentive to all homeowners.  Thanks for the simple break down.

Mar 10, 2010 06:49 AM
Cheryl Thomson REALTOR Ret Army
United Real Estate DC Metro Region (703.216.5635) cheryltee47@gmail.com - Prince William, VA
Associate Broker in Northern Virginia

Thanks a bunch everyone for visiting...I thought the information would be beneficial.

Mar 10, 2010 07:07 AM
Bill Petrey
AgentHarvest - A Real Estate Agent Finder Service - Dallas, TX

Best of all, you can get a home loan to perform all these improvements then not pay the mortgage.  Multiple ways to save money.

Mar 10, 2010 09:26 AM
Anonymous
Zeta Cross

What else was in that new Harvard study? Thank you so much for that!

Mar 10, 2010 10:28 AM
#9
Gary Steuernagel ASSOC. BROKER, ABR, CRB
Keller Williams Southwest - Sugar Land, TX

Make sure that before installing anything on the exterior of your house though that your client makes sure that the changes are approved by the Home Owners Association and municipal zoning rules if applicable.  Many of the restrictions out there won't allow  soalr panels for instance.  You don't want your clients making these changes at your advice and then having to take them off and possibly even paying some fines.

Mar 11, 2010 03:29 AM
Cheryl Thomson REALTOR Ret Army
United Real Estate DC Metro Region (703.216.5635) cheryltee47@gmail.com - Prince William, VA
Associate Broker in Northern Virginia

Thanks a bunch for looking out for me but I definitely did that.

Mar 11, 2010 03:33 AM
Beverly of Bev & Bob Meaux
Keller Williams Suburban Realty - West Orange, NJ
Where Buying & Selling Works

This is true, it pays to do this. The problem some people run into in NJ is many of the incentives are rebates and they don't want to (or don't have the money to)pay up front. Good info, though.

Mar 20, 2010 01:04 PM