Remodeling Tax Credits for Homeowners

Great news! The Obama Administration wants you to make your house more energy efficient and they're willing to pay you for it. The tax credits vary according to how green the project may be and the type of remodeling. Not only can you save money on electric and gas bills, but you can get a nice tax credit for it too. Below is a quick summary of the types of green remodeling tax credits:

Fuel Cells

Homeowners may deduct 30% of the cost, up to $500 per.5 kW of power capacity for fuel cells in the categories below. Expires at the end of 2016.

Fuel Cells (Residential Fuel Cell and Microturbine Systems)

You may be remodeling an existing home or building a new home. It must be your principal residence. Rentals and second homes do not qualify.

Renewable Energy

Homeowners may deduct 30% of the cost with no upper limit for renewable energy projects in the categories below:

Solar Energy Systems
Geothermal Heat Pumps
Small Wind Turbines

Expires at the end of 2016. You may be building a new home or remodeling an existing one. Second homes and principal residences qualify. Rentals do not qualify.

Home Energy Efficiency

Homeowners can deduct 30% of the cost up to $1,500 for energy efficient projects in the categories below. Expires at the end of 2010.

Roofs
Heating, Ventilating, Air Conditioning (HVAC)
Water Heaters (non-solar)
Windows and Doors
Insulation
Biomass Stoves

You must be remodeling an existing home and it has to be your principal residence. Rentals and new construction do not qualify.

Energy Star also operates an Energy Efficient Appliance Rebate program similar to Cash for Clunkers (although you do not have to turn in your old appliance). This program is administered through the states, so the appliances that qualify and the amount of rebate vary from state to state. To find out what is available in your state, visit http://www.energystar.gov/index.cfm?fuseaction=rebate.appliance_rebate

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