This article brought to you by Laurie Nadeau of Green Built Communities and the Park City Board of Realtors
Home Energy Tax Credits and Incentives to Save You $1000's In 2009
Home energy tax credits are available for solar energy, energy efficiency, biodiesel and hybrid cars, home solar panels and more. Rocky Mountain Power and Questar Gas are also providing many incentives for their customers.
Where is all this coming from? Well, when Congress passed the financial bailout bill late last year, it included a suite of new and renewed tax credits for individuals who want to make energy efficiency and renewable energy improvements to their home or cars. When President Obama signed the economic stimulus bill in February, the federal government expanded and extended some of those credits.
So what's in it for you as a homeowner?
$1,500 + $2000 Home Tax Credits for Energy Efficiency
You can claim a home tax credit for energy efficiency improvements made in 2009 thru 2010 if you install new insulation, energy-efficient windows/doors or an energy-efficient furnace, boiler or air conditioner and some roofing materials.
The Federal tax credit covers up to 30% (expanded from 10% by the economic stimulus bill) of the cost of a range of projects that meet certain specifications. What this means is, if you do $5,000 worth of qualifying work, and you will a $1,500 rebate on your Federal taxes as well as saving on energy bills for years to come.
There are no longer caps on certain home improvements thanks to the economic stimulus bill. One important thing to keep in mind is that the tax credit does not cover labor, only equipment.
Utah offers a state income tax credit for renewable energy systems. The investment tax credit for residential systems is 25% of the equipment and installation cost up to a maximum of $2,000. More info at http://geology.utah.gov/sep/incentives/rincentives.htm#retaxcred
$2,000+ for Geothermal, Solar (hot water and/or power), Wind Turbines and/or Fuel Cells
For qualified solar energy systems, geothermal heat pumps, small wind turbines, and fuel cell systems, the stimulus is leaving in place the 30% tax credit. You can get a tax credit of up to $2000 per system, and you can install all four for $8000 in tax credits. See specific details below. The solar energy tax credit is good through 2016. Incentives can be found at www.dsireusa.org.
Maximum incentives: Solar-electric systems placed in service before 2009: $2,000
Solar-electric systems placed in service after 2008: no maximum
Solar water heaters placed in service before 2009: $2,000
Solar water heaters placed in service after 2008: no maximum
Wind turbines placed in service in 2008: $4,000
Wind turbines placed in service after 2008: no maximum
Geothermal heat pumps placed in service in 2008: $2,000
Geothermal heat pumps placed in service after 2008: no maximum
Fuel cells: $500 per 0.5 kW
$7,500 Energy Tax Credits for Plug-in Hybrid Cars
The first 200,000 buyers of plug-in hybrid vehicles from each manufacturer now qualify for a $7,500 tax rebate.
$2,500 for Plug-in Electric Motorcycles or Low-Speed or Three-Wheeled Vehicles
The economic stimulus bill established a 10% tax credit through 2011 with a cap of $2,500 for new electric plug-in motorcycles, low-speed and three-wheeled vehicles. There's also a 10% tax rebate and a $4,000 cap for converting an existing vehicle to a plug-in.
Rocky Mountain Power
Rocky Mountain Power currently has a program for Solar power, and the incentive is $2/watt. There are limitations and the you must sign up and be approved well in advance. The program will run thru 2011. It is very limited and we should all call and try to get them to expand the program to include more homes. They can be reached at 866-344-9802.
They also provide rebates on new appliances and service work such as:
Clothes Washers, refrigerators, dishwashers, water heaters, lighting fixtures, ceiling fans, A/C, windows, insulation, furnace tune-ups, duct sealing and insulation. For detailed information call 1-800-942-0266.
*All Rocky Mountain Power incentives and programs are for Rocky Mountain Power customers only.
Questar Gas Thermwise Program
For $25, a Questar Gas technician will visit your home, conduct an energy audit, and provide you
with a detailed report on how to make your home more energy efficient. Follow thru on their recommendations and they will give you a $25 rebate on your gas bill.
Appliance rebates include: Energy Star clothes washers and gas dryers, gas water heaters (including tankless), as well as high efficiency gas furnaces, boilers and solar assisted gas water heaters.
They also provide rebates for energy efficient improvements such as windows, insulation and duct sealing/insulation. For more details call Questar Gas at 800-695-7375.
*All Questar incentives and programs are for Questar customers only.
Financing Options:
I know many of you are ask, how do I get the money to put these systems in place? Well, there are a few options available with the use of an Energy Efficient Mortgage (EEM).
-FHA allows lenders to add up to 100% of energy efficiency improvements to an existing mortgage loan by insuring a loan of up to 5% of a home's appraised value with certain restrictions. FHA EEM's can be used to purchase a home that is already EnergyStar certified or to make energy efficient improvements to a home you are buying.
-VA EEM's allow you to take $6000 for improvements on top of the purchase amount.
-Conventional loans allow homebuyers to borrow up to 15% of an existing home's appraised value for improvements documented by a Home Energy Rating (HER).
Some lenders can adjust your debt-to-income ratio by 2% to account for the energy savings you will realize with energy efficient improvements. For more details on the program that works best for you, contact your lender. Be sure to ask your lender about energy efficient improvements and re-financing options for the home you already own.
Green Built Communities
435-659-6990 cell
801-303-9117 fax
Laurie@GreenBuiltCommunities.com
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