Energy Saving Home Improvements Can Earn You Tax Credits

According to Energy Star, the House passed $18.1 billion in renewable energy tax incentives. This bill still needs to be passed by the Senate and signed by the President to become a law. This bill is similar to the one passed in 2007 but was removed from the 2007 Energy Bill. As of December 31, 2007, most of the residential tax credits have expired. The due date for reporting credits on 2007 taxes was April 15, 2008. Although, tax credits for solar water heaters and solar panels remain in effect until December 31, 2008.

Replacing existing windows and doors with Energy Star qualified windows and doors, offered a tax credit of ten percent of the cost up to $200. Installation costs cannot be included in the tax credit. The replacement of less efficient windows and doors with Energy Star qualified windows and doors save an average of $126-$465 a year when replacing single pain windows and $27-$111 a year when replacing double-pane, clear glass according to Energy Star. The cost of replacing a window is $600-$1,000. But the added benefits of making these replacements include, reduced chill, reduced condensation, and shielding from the summer heat during the warmer months.

Adding storm windows provided a tax credit of ten percent of the cost up to $200 for all windows, skylights, and storm windows. Adding storm windows is a significantly less cost to the homeowner. Storm windows have energy saving benefits, increase sound resistance, and can protect damage to the homeowner’s property caused by UV light.

Adding a storm door will increase the energy efficiency of the opening up to forty-five percent. The Energy Policy Act of 2005 allowed homeowners to secure a tax credit of up to ten percent of the amount paid up to a total credit of $500 according to Larson Doors. Additionally, storm doors help protect the primary door from damage due to exposure to the elements. Adding a storm door is substantially less expensive than the replacement of the entire door.

Metal roofs are extremely durable and carry impressive and lengthy warranties. They offer additional protection from severe weather such as hail and hurricanes. Discounts may be available on homeowner’s insurance. According to www.metalroofing.com, the installation of a reflective metal roof can save as much as forty percent of cooling bills in warmer climates. Additionally, homeowners were eligible for tax credits on ten percent of the cost up to $500 up until December 31, 2007.

The EPA estimated that the average home can benefit from up to a twenty percent savings on heating and cooling bills by air sealing, adding insulation to attics, crawlspaces and rim joints. Most homes do not have adequate insulation and this accounts for significant energy loss. CNN reports that the up-front cost to insulate the attic and foundation is about $1,00 to the do-it-yourselfer and about $2,000-$4,000 for a handyman to install it.

By making a home more energy efficient, one begins long-term savings on energy bills and reduces his environmental impact. Visit Energy Star to learn more about the potential savings making energy saving improvements will have on one’s home and life. One can also keep abreast of the pending legislation which will afford homeowners tax credits for making such energy saving improvements.

Energy Star, “Federal Tax Credits For Energy Efficiency“

Larson Storm Doors, “What’s New“

Metalroofing.com, “Investment Grade Roofing“

Josh Garskof and Joe Light, “Cut Your Energy Bills in Half” CNN Money