Green Tax Breaks, and a Government Site Named DSIRE
Next year, homeowners will qualify for credits for installing top-efficiency energy systems.
(Standard Solar)
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Given the economic battering we're withstanding, anyone of sound mind is thinking twice before buying as much as a cheap sweater, not to mention expensive home improvements.
But recessions don't last forever. At their worst, they always look like the start of a dark new era, but even then, somewhere in the background, the business cycle keeps chugging, building traction toward an eventual recovery. Now may not be the time to invest in your house, but it's a very good time to plan.
Recessionary thinking, and the way it snowballs, was described aptly in an e-mail I received this week from Anneli Levy, a reader in Bethesda. It was in response to a recent column outlining ways to cut spending during the downturn.
"I have a friend whose son is an independent contractor," Levy wrote. "Not remodeling kitchens would directly impinge on him and his livelihood. Doing your own painting would do the same thing. . . . I, myself, will probably buy only one-half the number of pansies for my front yard and have cut back on a number of food items. Unfortunately, we are all together in one knot in our way of life."
Nobody is suggesting that you sacrifice your financial stability through patriotic spending. But you should know that if you return to investing in your home next year, there will be some attractive federal tax credits lined up to help you do it in the most energy-efficient way possible.
Many of these incentives had been available during 2006 and '07 but expired for 2008. They will not be available retroactively for 2008 purchases, so it would be wise to hold off on such expenditures through the rest of this year.
Homeowners will qualify for credits to help with the cost of installing top-efficiency windows, doors, roofs, heating and air-conditioning systems, and water heaters. Only certain products, the most efficient ones, will qualify. You can be sure retailers will call your attention to them, but you can research them yourself at http:/
For qualifying exterior doors, storm doors, metal roofs and insulation, the tax credit will be 10 percent of the cost, up to a $500 credit.
Windows, skylights and storm windows will qualify for a credit of 10 percent of the cost, with the credit capped at $200.
Central air-conditioning systems and heat pumps will qualify for $300 credits.
Top-efficiency furnaces or boilers that go beyond the government's Energy Star standard will qualify for a $150 credit. Some super-efficient tankless or electric heat-pump water heaters will qualify for a $300 credit.
The really big-ticket investments, residential fuel cells and solar panels, allow you to generate your own electricity. They will qualify for bigger tax credits, and homeowners will have until the end of 2016 to get them installed and qualify for the tax break.
