January 20th, 2011.
Good news for homeowners across the nation: Because of recent legislation calling for an extension of the 2010 tax cuts into 2011 there are now even more reasons to go green with your next remodeling/updating project. Homeowners who upgrade to energy efficient windows and doors are eligible for additional tax incentives from now through December 31st, 2011. According to the new rules, homeowners can claim a credit of 10% for up to $200 dollars for window and door replacement and 10% up to $500 dollars for exterior door replacement, not including installation and labor fees. Additionally, there is now also a lifetime limit of $500 (running fromJanuary 1st, 2006 to December 31st 2011) for any type of applicable home renovation that meets the energy efficient standards (although consumers who have already reached the lifetime limit of $1500 set in 2009-2010 are not eligible for any additional refunds).
So what do you have to do to be eligible for this tax credit? The answer is pretty simple. Upgrading to any of a number of approved Energy Star home products (installed at your primary residence) with the proper documentation may make you eligible for the money. This means that you are not just limited to windows and doors – the tax incentives also apply to a variety of home appliances, roofing materials, HVAC installations, and so on.
We’ve always been huge proponents of Energy Star products and energy-efficient building (check out our MN GreenStar Bronze IV award winning remodel) and we’re thrilled that the new legislation is giving homeowners more time and more reasons to go green.
Though generally the guidelines are fairly simple, it’s important that you understand exactly what the policy is and if you are able to receive incentives before making any big purchasing decisions. The IRS will be releasing more specific guidelines in the next few weeks, which can be found at www.irs.gov. For information about qualifying EnergyStar appliances, visit their official website at www.energystar.gov. Always remember to check with your accountant if you have specific questions about the tax credit program or want to see if you qualify.