2011 Tax Credits for Energy-Efficient Home Imporvements

NARI (National Association of the Remodeling Industry) has an article posted on their website dated 12.26.10, talking about how new federal law guts tax credits for energy-efficient home improvements. While reading this article I feel like they are taking a totally negative attitude towards the revisions in the tax credits.

Personally Almar was taking the opinion that once the tax credits expired on 12.31.10 that was it we weren’t getting anything in 2011. So my perception of the NARI article is a bit different, cause I’m reading it thinking “Great! At least my homeowners can get something a little extra for the improvements they continue to make this year”

The long and the short of the changes for 2011 are:

1. The bill pushed back the expiration date for tax deductibility of mortgage insurance premiums for another year.

2. In 2011 you can get a 10% credit with a $500 maximum for purchases of insulation materials, exteriors windows, storm doors, skylights, metal and asphalt roofs that resist heat gain.

3. $150 tax credit limit on the cost of qualifying gas, propane, and oil furnaces, and hot water boilers.

4. $300 credit limit on central air systems, electric heat pumps water heaters, biomass stoves, electric heat pumps, and gas and propane water heaters.

5. $200 is now available for installing energy efficient windows in 2011.

These are all huge cuts from the 2010 credit available, but it is still and extra something just for making smart improvements to your home that will continue to save you money year after year. Because don’t forget that once you make an energy efficient improvement the long-terms savings need to be taken into consideration as well.

My hope is that there will be another change and increase in the tax credit program for energy efficient projects, because I think they are very important to the health and comfort of Almar’s clients. Until you experience the change from draft windows to new vinyl replacement, or the change from a home with no insulation to one with you can’t really understand how vitally important the changes your can’t see sometimes are your home.

Allison Q Guido, General Manager