The American Recovery and Reinvestment Act of 2009, which President Barack Obama signed in February 2009, provides that taxpayers can take credit for qualified energy-efficient home improvements installed. Such improvements include insulation, exterior doors and exterior windows, roofing, heating and cooling systems, and also solar panels.
A qualifying radiant barrier insulation for your home, for instance, will entitle you 10% off of the cost, with a maximum of up to $500.00. Installing qualifying replacement windows, on the other hand, would mean 10% off, up to $200.00.
We always say “qualifying” because the IRS has issued guidelines and regulations that define “energy efficient” and, in effect, also define qualified products and solutions, such as energy-efficient windows. Basically, energy products are those that are tested and proven to reduce our carbon footprint. Energy-saving products must have a “Manufacturer Certification Statement,” which you will need in order to claim your credit.
The good thing about remodeling your home to give way to these energy-saving solutions is that, aside from qualifying for tax credit and for being able to help protect the environment, you also get to save on energy costs. With proper insulation, for example, you no longer have to work your heater or your cooler double time, and you can, therefore, significantly reduce your monthly utility bills. You can instead spend your money on some other more important things. There is also one bonus to getting an energy-efficient home renovation. You get to improve how your home looks. You get rid of your old and rusty roofing, or those old and rotten doors and windows in the guide of going green! If you have always wanted to have a newer-looking living space, then you might as well do it, but in an environmentally friendly way. It’s really like hitting two birds with one stone.