Ecology DOES Go With Economy!
Nothing is worse when you are broke than having something expensive go wrong with your house-the water heater breaks, the roof starts leaking…. Well, with the 2009 stimulus package and some generous federal tax credits you can do a number of home improvements and expect to get a return on some of the money you spent right away. Tax credits actually reduce what you owe to the government, as opposed to tax deductions, which lower your taxable income. Installing energy efficient systems before December 31st 2010 entitles you to 30% of what you spend, up to $1,500, in tax credit. Some states offer further incentives. Visit http://www.dsireusa.org/ for a guide to state and federal tax credits.
Alternative energy systems that qualify include:
- reflective roofing (look for specially treated asphalt or reflective metal and reduce your air-conditioning costs by 15%);
- energy efficient doors and windows (look for windows with low-E glass and inert gas between double panes and spacers; look for doors with frames made of vinyl-clad wood or fiberglass with insulating core materials and weather stripping; also installing a storm door qualifies for a credit);
- insulation (add an additional layer of R-19 or R-30 in the attic and save up to 20% on heating and cooling bills);
- efficient hot water heaters (gas, propane or oil heaters with a thermal efficiency of 90% qualify, or a tankless “on demand” system that runs on natural gas or propane – these eliminate the need to keep several gallons of water hearing at all times); and
- heating and air conditioning systems (look for energy Star package systems or even split systems for your AC; heating systems must be highly efficient and have an Annual Fuel Utilization Efficiency rating greater than 90 for gas furnaces and greater than 85 for oil furnaces, boilers, and waters-heating systems).
So, if you find yourself with a leaky roof and no choice but to fix it, get some of your investment back right away by choosing the eco-friendly materials. In addition, you’ll reduce your cooling costs. Down the road when your AC goes out, you can purchase a smaller system that is less expensive to run (even more savings). While you’re up there working on the roof, you may as well add a layer of insulation– immediate tax credit, long-term savings on energy costs.
Additional tip – For anyone who’s got the cash to be a little more aggressive, or anyone who’s building from scratch, installing a wind turbine or a solar power system entitles you to a 30% tax credit with no limit.
