It seems like a lot of people have heard about the 2009 Federal Tax Credit but that there is some confusion about it and how you can take advantage of it. So I recently went to a seminar to learn more about it and thought I’d pass that information along to you.
Did you know that 91% of American’s have jobs? Even with all the news about how bad off everyone is almost all American’s who want jobs have them, are still bring home a salary every week, and are still buying things. We are also seeing a lot of clients who want to take advantage of the tax credits to reduce their energy usage and long-term monthly energy costs.
The 2009 Tax Credit raised the rebate from 10% in previous years to 30% and is available for a limited time and only for certain Energy Efficient products. Because it is not a Tax Deduction but rather a Tax Credit it is much more valuable to you because you will get a dollar for dollar savings, which will be applied after adjusted gross income is calculated.
The Energy Tax Credit applies to homeowners who make eligible, energy-efficient improvements to their existing homes.
1. Can only be utilized for the taxpayer’s principal residence.
2. Only the actual product costs (of the qualifying products) are eligible; the cost of labor / installation is NOT eligible
It provides a tax credit to homeowners who purchase and install qualifying energy-efficient products in 2009 and 2010. Valid for 30% of product cost up to a maximum of $1,500
As of today, it applies to 30% of product cost up to $1,500 maximum for all improvements combined**
–Windows** = Jan. 1, 2009 – May 31, 2009 If products meet ENERGY STAR criteria
= June 1, 2009 – Dec. 31, 2010 U factor ≤ 0.30 and SHGC ≤ 0.30
–Doors** = U factor ≤ 0.30 and SHGC ≤ 0.30
–Insulation** = Meets 2009 IECC & Amendments
What will you need to keep for your records?
1. The Manufactures Certification Statement
2. The Energy Start Label
3. NFRC Label
4. And Invoice showing the product cost as charged by your contract.
So what should you know?
Did you know that as much as 40% of your homes heat loss occurs thru the walls even if you have insulated walls? Since studs make up ¼ of your homes exterior, it’s like having one entire wall with NO INSULATION! And that half of your utilities are spent on heating and cooling your home?
Why you ask? Even with insulated walls there are breaks in your thermal bridging (the framing) And what happens is air escapes thru the walls, so you are paying for it and it’s just being wasted.
So what can we do? Well you have two options. Almar can install new vinyl siding with either Foam insulation (which qualifies for the tax credit) or insulated Vinyl Siding panels (which doesn’t qualify right now but industry advocates are working on it)
Insulation Board R-values range from R-4 to R-8 per inch of thickness (2.54 cm), which is 2 to 3 times greater than most other insulating materials of the same thickness. Also, if the installation is carefully installed, foam insulation may control air infiltration more effectively than other types of insulation. Depending on the type of insulation and heat you have already you could save an additional $671 per year.
Insulated Siding reduces the heating and cooling energy loss through the walls by up to 20% and delivers up to 5 times the insulating R-value of any other siding choice. Insulated siding is actually made with a special insulating foam crested specifically to act as an energy barrier. Rigid foam insulation is form fitted behind the exterior of high quality vinyl siding so it is between the siding panel and the exterior wall to keep heating and cooling energy inside.
Insulated Windows:
Replacing with ENERGY STAR windows an average New England home can save up to $465 a year. To qualify for the tax credit, windows, doors, and skylights placed in service after February 17, 2009 must have a U-factor and Solar Heat Gain Coefficient (SHGC) less than or equal to 0.30. Almar has several options for windows that will meet the Tax Credit qualifications, many of them are manufactures by Harvey Building products, which is a local company whose manufactuing plants are right here in new England.
Insulated Doors:
Almar generally reccomends Therma-Tru Insulated Doors.they are also unmatched with the best warranties in the industry. Every line of doors comes with a package of performance that is unrivaled in the industry. With an insulated door you will not only see an increase in comfort, energy efficiency and performance, you will also see an increase in curb appeal. Our fiberglass and steel entry doors will add beauty and security to your home. In fact, you can increase the perceived value of your home by more than $24,000 just by adding a Therma-Tru entry door system. Learn More.
Roofing:
Reflective asphalt shingles that also meet ENERGY STAR requirements are eligible for the tax credit. CertainTeed cool roofing products form a barrier between the sun and your energy bills by reducing your roof’s temperature during the hottest months of the year. And that means lower energy costs (as much as 20%) and greater savings over the life of your roof. Plus, each of
CertainTeed’s cool roofing products, Landmark Solaris™ (all colors), Landmark™ (Silver Birch, Mist White and Star White), Star White in our CT20™, XT25™, XT30™ product lines, and CoolStar low-slope roofing, qualify for a rebate under the American Recovery and Reinvestment Act of 2009 (ARRA).
Solar Water Heating:
Sunshine is free. Imagine using it to heat your water. ENERGY STAR qualified solar water heaters can cut your water heating bills in half and reduce your carbon footprint. The average life expectancy of qualified solar water heating systems is 20 years, much longer than standard gas or electric storage water heaters.
A 2006 U.S. Census report showed that a family of 4 with an eletrcia hot water tank could save an average of $410 a year with solar hot water. But remember that was 3 years ago and energy cost have spiked since then imagine what the average savings is today!
There are some other products that are also eligible for Tax Credit you can read more about them on the Energy Star website.
Since energy costs have been rising and will continue to go through the roof (pardon the pun), you need relief NOW. Take a look at what’s been happening to your heating and cooling budget over just a 10-year period.
1998 2008 % Increase
Electricity (cents/KWH) $0.0672 $0.0939 40%
Natural Gas ($/MCF) $7.4500 $15.1900 104%
Propane (cents/gal.) $0.2570 $1.6100 525%
Heating Oil (cents/gal.) $0.3840 $3.2100 735%
Based on Department of Energy historical data
You cannot afford not to make your house more energy Efficient. Your energy cost keep going up, but can your income keep up? You need to seal off “The Great Energy Leak” and save money on your bills by upgrading your home with Insulated Windows, Insulated Doors, Foundation Ceiling & Roof Insulation and wrapping your home in an insulation blanket all while taking advantage of the Federal Tax Credit.
Almar is a full service remodeling company that has been serving the South Shore since 1959. Almar’s office is located at 1130 Washington St on Rt. 53 in Hanover. For more information please call 781-826-2577 or email us at Almar@AlmarBuilding.com or visit the Almar website at http://www.almarbuilding.com/
Did you know that 91% of American’s have jobs? Even with all the news about how bad off everyone is almost all American’s who want jobs have them, are still bring home a salary every week, and are still buying things. We are also seeing a lot of clients who want to take advantage of the tax credits to reduce their energy usage and long-term monthly energy costs.
The 2009 Tax Credit raised the rebate from 10% in previous years to 30% and is available for a limited time and only for certain Energy Efficient products. Because it is not a Tax Deduction but rather a Tax Credit it is much more valuable to you because you will get a dollar for dollar savings, which will be applied after adjusted gross income is calculated.
The Energy Tax Credit applies to homeowners who make eligible, energy-efficient improvements to their existing homes.
1. Can only be utilized for the taxpayer’s principal residence.
2. Only the actual product costs (of the qualifying products) are eligible; the cost of labor / installation is NOT eligible
It provides a tax credit to homeowners who purchase and install qualifying energy-efficient products in 2009 and 2010. Valid for 30% of product cost up to a maximum of $1,500
As of today, it applies to 30% of product cost up to $1,500 maximum for all improvements combined**
–Windows** = Jan. 1, 2009 – May 31, 2009 If products meet ENERGY STAR criteria
= June 1, 2009 – Dec. 31, 2010 U factor ≤ 0.30 and SHGC ≤ 0.30
–Doors** = U factor ≤ 0.30 and SHGC ≤ 0.30
–Insulation** = Meets 2009 IECC & Amendments
What will you need to keep for your records?
1. The Manufactures Certification Statement
2. The Energy Start Label
3. NFRC Label
4. And Invoice showing the product cost as charged by your contract.
So what should you know?
Did you know that as much as 40% of your homes heat loss occurs thru the walls even if you have insulated walls? Since studs make up ¼ of your homes exterior, it’s like having one entire wall with NO INSULATION! And that half of your utilities are spent on heating and cooling your home?
Why you ask? Even with insulated walls there are breaks in your thermal bridging (the framing) And what happens is air escapes thru the walls, so you are paying for it and it’s just being wasted.
So what can we do? Well you have two options. Almar can install new vinyl siding with either Foam insulation (which qualifies for the tax credit) or insulated Vinyl Siding panels (which doesn’t qualify right now but industry advocates are working on it)
Insulation Board R-values range from R-4 to R-8 per inch of thickness (2.54 cm), which is 2 to 3 times greater than most other insulating materials of the same thickness. Also, if the installation is carefully installed, foam insulation may control air infiltration more effectively than other types of insulation. Depending on the type of insulation and heat you have already you could save an additional $671 per year.
Insulated Siding reduces the heating and cooling energy loss through the walls by up to 20% and delivers up to 5 times the insulating R-value of any other siding choice. Insulated siding is actually made with a special insulating foam crested specifically to act as an energy barrier. Rigid foam insulation is form fitted behind the exterior of high quality vinyl siding so it is between the siding panel and the exterior wall to keep heating and cooling energy inside.
Insulated Windows:
Replacing with ENERGY STAR windows an average New England home can save up to $465 a year. To qualify for the tax credit, windows, doors, and skylights placed in service after February 17, 2009 must have a U-factor and Solar Heat Gain Coefficient (SHGC) less than or equal to 0.30. Almar has several options for windows that will meet the Tax Credit qualifications, many of them are manufactures by Harvey Building products, which is a local company whose manufactuing plants are right here in new England.Insulated Doors:
Almar generally reccomends Therma-Tru Insulated Doors.they are also unmatched with the best warranties in the industry. Every line of doors comes with a package of performance that is unrivaled in the industry. With an insulated door you will not only see an increase in comfort, energy efficiency and performance, you will also see an increase in curb appeal. Our fiberglass and steel entry doors will add beauty and security to your home. In fact, you can increase the perceived value of your home by more than $24,000 just by adding a Therma-Tru entry door system. Learn More.
Roofing:
Reflective asphalt shingles that also meet ENERGY STAR requirements are eligible for the tax credit. CertainTeed cool roofing products form a barrier between the sun and your energy bills by reducing your roof’s temperature during the hottest months of the year. And that means lower energy costs (as much as 20%) and greater savings over the life of your roof. Plus, each of
CertainTeed’s cool roofing products, Landmark Solaris™ (all colors), Landmark™ (Silver Birch, Mist White and Star White), Star White in our CT20™, XT25™, XT30™ product lines, and CoolStar low-slope roofing, qualify for a rebate under the American Recovery and Reinvestment Act of 2009 (ARRA).
Solar Water Heating:
Sunshine is free. Imagine using it to heat your water. ENERGY STAR qualified solar water heaters can cut your water heating bills in half and reduce your carbon footprint. The average life expectancy of qualified solar water heating systems is 20 years, much longer than standard gas or electric storage water heaters.A 2006 U.S. Census report showed that a family of 4 with an eletrcia hot water tank could save an average of $410 a year with solar hot water. But remember that was 3 years ago and energy cost have spiked since then imagine what the average savings is today!
There are some other products that are also eligible for Tax Credit you can read more about them on the Energy Star website.
Since energy costs have been rising and will continue to go through the roof (pardon the pun), you need relief NOW. Take a look at what’s been happening to your heating and cooling budget over just a 10-year period.
1998 2008 % Increase
Electricity (cents/KWH) $0.0672 $0.0939 40%
Natural Gas ($/MCF) $7.4500 $15.1900 104%
Propane (cents/gal.) $0.2570 $1.6100 525%
Heating Oil (cents/gal.) $0.3840 $3.2100 735%
Based on Department of Energy historical data
You cannot afford not to make your house more energy Efficient. Your energy cost keep going up, but can your income keep up? You need to seal off “The Great Energy Leak” and save money on your bills by upgrading your home with Insulated Windows, Insulated Doors, Foundation Ceiling & Roof Insulation and wrapping your home in an insulation blanket all while taking advantage of the Federal Tax Credit.
Almar is a full service remodeling company that has been serving the South Shore since 1959. Almar’s office is located at 1130 Washington St on Rt. 53 in Hanover. For more information please call 781-826-2577 or email us at Almar@AlmarBuilding.com or visit the Almar website at http://www.almarbuilding.com/
•Further, Almar does not intend to and is not providing legal or tax advice and recommends that purchasers consult their own tax advisor to determine whether the products they purchase qualify for the tax credit.
•Please consult with a professional tax advisor or the IRS.
