Posts Tagged ‘$1500’

Energy Efficient Tax Credits For 2011 and 2012

March 20, 2012

It’s that time of year again, and although we have written about Energy Efficiency tax credits for 2011 before, if you had work done this past year, it might be time to review.  You can also go to our learning center for solutions to common problems we fix in homes just like yours, as well as links to our franchise locations; they can provide details about incentives available in their area.

Many of the federal tax credits ended in 2011, but not all of them.  What will continue for 2012, are credits for some renewable energy systems.  Solar water heating and photovoltaic systems, small wind systems, and geothermal heat pumps, are all eligible measures through 2016.  If you are thinking of alternatives, consider our interactive online home to get a better sense of whether or not these types of improvements are really what you need this year.

Alternative energy systems can be expensive, and it often makes the most sense to install them in homes that are very efficient from the start.  You might be surprised by what some simple measures can save you money.  Tax credit or not, insulation, air sealing and efficient heating and hot water systems can pay for themselves in short order.  Simple measures that cost less and save you more!

Thanks,

Jason

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Summary of 2011 Home Energy Improvement Tax Credit Now Available

January 5, 2011

As noted earlier, the federal energy efficiency tax credit has been extended through 2011, but the federal government has significantly changed the credit limits and eligibility requirements.  And we’ve been getting a lot of questions about this.  So let’s try to clarify things.  Here’s how it looks in 2011.

For measures installed between January 1, 2011 and December 31, 2011, the credit is generally 10% of costs on qualifying energy efficiency improvement measures, up to a maximum of $500.  However, special limits have been put on certain qualifying equipment and measures.  For example:

  • 10% up to $500 for insulation, roofs, and doors
  • High efficiency furnaces and boilers – $150
  • Air-Conditioners and  heat pumps – $300
  • Main air circulating fans – $50
  • ENERGY STAR Windows – 10% capped at $200
  • Energy efficient water heaters – $300

The $500 cap will apply to anyone who received the credit from Jan. 1, 2005 to present. Thus, if you’ve claimAsk your GreenHomes Advisor for information of the 2011 Tax Creditsed a cumulative credit of $500 or more since Jan. 1, 2005, you won’t be eligible for the 2011 extension.  If you’ve claimed less than $500 cumulatively, you are eligible for the difference with qualifying measures.  Check out our more complete summary of the 2011 credits and FAQ for further details.

Certain renewable energy tax credits for solar PV, solar hot water, and geothermal, for example, remain in place at 30% of cost, with no cap.

[Note: 2009-2010 tax filers, the 2010 tax credit information is still available—don’t forget to claim any credits you’re eligible for when you file your 2010 tax return.]

Thanks,
Mike

LA Times: Energy-efficiency tax credits gutted

December 26, 2010

The LA Times reports what we touched on several days ago.   The extended federal tax credit is much lower in 2011 than is was in 2010.   This is certainly a big step backward in terms of a good national energy policy (a phrase you almost can’t use “national energy NONpolicy” might be better.  But in many states–including California–the outlook isn’t bleak.   In CA, for example, Energy Upgrade CA, is just about ready to kick off in earnest (we’ve already be delivering improvements under the pilot phase.   And as I mentioned last time, many generous state, local, and/or utility incentives still exist or are just coming on line.  Give us a call or visit our website to see how we can help.

And be proactive about it.  While the jobless numbers are still way too high, the U.S. economy has begun its climb–expected to be a long, slow climb, out of the dumps.  And with it, energy prices are climbing.  As reported in the WSJ, pre-Christmans trading saw oil futures climbing above $91/barrel again, up more than 13% since November.  “Several major banks expect prices to reach triple digits next year as demand rebounds with the improving global economy.”    And retail gasoline price are climbing, reflecting a broader impact to consumers.

Dollars invested in energy-efficiency start saving now, and provide even greater protection as energy prices increase.  So while the gutting of the tax credit isn’t a good thing, it’s still the right time to save.  Take the steps now.

Thanks,
Mike

Home Energy Upgrade Tax Credits Chopped in 2011.

December 21, 2010

[Editor’s update, Jan. 4, 2011:  A comprehensive summary of the 2011 energy tax credit with a table listing specifications and dollar amounts for various improvements is now available.]

Included in the tax legislation that Congress recently passed and the President signed is a one-year extension of the federal tax credit for energy improvements to homes.  Unfortunately, it’s significantly less attractive than the 2010 tax credit.  In 2011, there will be an overall cap of $500, with smaller caps for particular items.  For example, qualifying furnaces would only garner a $150 credit.   The WSJ’s Market Watch gives a nice high level view.  The 2011 credit is in sharp contrast to the $1,500 credit you could have received in 2010.  There’s really only one week left to try to take advantage of the much better credit.  If you think you’ll need a new furnace (for example) over the next couple of years, it may be worth accelerating the change–if you can still squeeze it in.

We’ll post a comprehensive view of the details for 2011 on our website in coming weeks, much like information on the current credit available in 2010.

There are still very generous state, local, and/or utility incentives for many of the customers we serve.  Give us a call or visit our website to see how we can help.

Thanks,
Mike

Last Call for $1,500 home efficiency tax credits.

December 11, 2010

The final two weeks:  The $1,500 federal energy efficiency tax credits expire on December 31st 2010.  Need a new furnace?   Insulation?  This credit is likely to disappear, and to be eligible, qualifying equipent has to be installed by December 31, 2010.  The tax credits offer up to 30%/$1,500 back on qualifying measures.   That can be 1/3 off the price of a hgih-efficiency furnace with an efficient motor to save you not just gas, but electricity.   You’re not likely to find a better time to get a new furnace in particular, so now is the time to act to avoid missing this opportunity.

Thanks,
Mike

Time running out on federal tax credit

September 16, 2010

A reminder that the available federal energy efficiency tax credits expire on December 31st 2010.  The tax credits offer up to 30%/$1,500 back on qualifying measures.  With all the partisan rancor in Congress right now, it’s unclear—I’d say unlikely—that Congress will be able to pass any extension of the credits.  Any qualifying work would need to be installed by December 31st to be eligible.  Now is the time to act to avoid missing this opportunity.

Reminder: Energy-efficiency home improvement tax credits are still in place

January 20, 2010

Many people scrambled to get qualifying improvements installed before the end of 2009 to be able to claim tax credits.  It’s important to remember that ARRA extended these energy-efficiency home improvement tax credits through December 31, 2010.  And thus the $1,500 credit is still available for qualifying insulation, furnace and air-conditioner replacements, window and door replacement, and other measures.   We’ve got a good summary of measures that qualify and answers to some frequently asked questions on these federal tax credits for energy-efficiency improvements.

Thanks,
Mike

Is it time to replace your furnace, boiler, or heat pump?

October 25, 2009

We get asked lot whether someone should replace their furnace, boiler, or heat pump.  Great question.  Of course, it’s hard to say for certain without know the particulars–but the best answer is often earlier than people think.

Most people wait until their system breaks down to consider replacing it.  They don’t want to pay the cost of the new equipment any earlier than they have to.  With today’s new high-efficiency furnances and boilers, however, you may be spending a lot more in waste heat and money sent in smoke up your chimney than you save by waiting.  It’s be worth taking a look at.

And there are a variety of comfort, safety, and noise factors which might also point you toward a new system now.  Look for simple signs that it may be time to replacement your furnace.

A huge advantage of “planned replacement” (as opposed to “emergency replacement”) is that you have the luxury of making adjustments to your home which can greatly improve comfort, safety, and energy-efficiency, and you can match the system to your exact requirements rather than getting stuck with whatever is on the shelf.

Check the signs that it might be time to replace.  If it is, look at your whole house for the best combination of improvements to me.  And remember that all of this may be eligible for the current $1500 federal tax credits for home improvements including furnaces, air-conditioning, insulation, windows, and even roofing.

Thanks,
Mike

ARRA / Stimulus package $1,500 home energy improvement tax credits (redux!)

March 5, 2009

We continue to get tons of questions about the new $1,500 tax credit available for home energy improvements and included in the stimulus package. Repeating my earlier post, the ARRA includes increased tax credits for 30% of the cost of qualifying improvements up to $1,500 for improvements installed between January 1, 2009 and December 31, 2010.  We have put together an updated summary of the credits and answers to the most common questions we get in an summary page on our website. 

ENERGY STAR also has detailed information on the credits. The Alliance to Save Energy also has a similar summary with notes that complement the ENERGY STAR notes. Good stuff that applies to almost every project that GreenHomes completes!

Thanks,
Mike


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