Energize Your Sacramento Home

. A credit of 30% of the cost, up to $1500, until December 31, 2010

Reports show that consumer spending has been up slightly this year, a hopeful indication of a slowly recovering economy.  But many Sacramento homeowners continue to be cautious, trying to lower costs and keep to a moderate budget.  One of the best investments a Sacramento homeowner can make is to install energy efficient systems that will help reduce utility bills.  However, the upfront costs of replacing a water heater or installing new windows can be considerable.  If you want or need to replace appliances or systems, consider making the upgrades soon to take advantage of the current tax incentives that can offset the costs.

The American Recovery and Investment Act, known as the Stimulus, has extended tax credits for making various energy related investments.  The goal is to encourage Sacramento homeowners to conserve energy by purchasing energy-efficient products or renewable energy systems.  The items that warrant tax credits fall under several categories based on the item and the property type.  Here is an overview of what is included in the tax credit.

A credit of 30% of the cost, up to $1500, until December 31, 2010 on items installed in an existing home (no new construction) that is a primary residence:

• Windows and Doors
• Insulation
• Heating, Ventilating, Air Conditioning (HVAC) systems
• Roofs (asphalt and metal)
• Non-solar Water Heaters (natural gas, propane, oil)
• Biomass Stoves

For windows, doors, insulation, and other similar projects that secure the home exterior, the credit is limited to the cost of materials.  If you buy a new HVAC system that meets the energy-efficient guidelines, you can also claim the cost of installation.

A credit of 30% of the cost (no limit) until December 31, 2016 on items installed in an existing or newly constructed home for both primary and secondary residences:

• Solar Energy Systems
• Residential Wind Energy Systems (Turbines)
• Geothermal Heat Pumps

Both labor and materials qualify for the credit.

A credit of 30% of the cost, up to $500 per .5kW of power capacity, until December 31, 2016 on items installed in an existing or newly constructed home that is a primary residence:

• Fuel Cells

The bill also includes new and modified credits for qualified plug-in electric drive vehicles and plug-in electric drive conversion kits.  To find a list of hybrids that are eligible, go to http://www.fueleconomy.gov/feg/tax_hybrid.shtml.

There are specific requirements that each item must meet in order to qualify for the credit. Because current standards are higher than they were for earlier tax credits, not all products that carry the EnergyStar label are eligible for the new credits.  Thoroughly research which appliances and products meet the criteria to ensure that you will reap the greatest financial benefit.  For more detailed information check out the IRS website, http://www.irs.gov/newsroom/article/0,,id=206875,00.html.

New Windows and Doors

New Windows and Doors
The Home Improvement that Pays for Itself

As another winter comes to a close, are you thinking that your house feels draftier each year?  Do you notice air seeping through your windows and doors?  Older, leaky windows and doors account for a large percentage of home heat loss in the winter and heat gain in the summer.  Replacing old ones with new energy-efficient models can be one of the most beneficial things you do to maintain your home and your budget.  And there has never been a better time to update your windows and doors.  The American Recovery and Investment Act, commonly referred to as the Stimulus, offers a tax incentive that gives 30% of the cost, up to $1500, back to those who make energy-efficient improvements to their homes.  Taxpayers have until the end of 2010 to take advantage of the credit.  And the tax break is only a fraction of the financial benefits you will see from installing energy-efficient products.  You may quickly see a reduction in your heating and cooling bills.  In time the windows and doors will pay for themselves with the savings in energy costs.

There are several choices in windows and doors, and a professional can be a valued resource in making the right choice.  Even with the tax credit, it is a large investment that calls for thoughtful planning.  Begin by researching window and door companies in your area.  Most local home centers also offer installation services.  There are a multitude of styles in a range of price points for you to consider, including the overall shape, the opening and closing mechanisms, the quality of the glass, the construction material, and the design features. Newer windows and doors also offer improved operation – opening and closing more smoothly and making cleaning and upkeep easier.  To qualify for the tax credit the products must meet specific guidelines that a professional can outline for you.

Most window dealers will bring samples and materials to your home for a consultation.  Make appointments with a few dealers so you can compare cost estimates and installation processes.  Draw up a list of questions to ask each dealer:
•    Do they manufacture their own materials and assemble their own products?
•    What is the guarantee on the product and the labor?
•    How long after signing a contract will installation be scheduled?
•    How long will installation take, with how many people on the crew?
•    Will installation be done from inside or outside of the house?
•    How much cleanup will the crew do?
•    Do they subcontract the labor for installation?  Who is responsible if there is a problem with installation?
•    What is the process to replace a damaged window or door at a later date?
•    Which products meet the standards to qualify for the tax credit?
•    What are the financing options?

Once you have done the research and gathered all the information you can choose the right product that will make your family and your wallet happy for years to come.