The reinstated federal tax credit for home owners will come to an end this December as it has already seen a positive outcome for energy efficient home purchases. The tax credit has allowed for plenty financial incentives as home owners can apply for a 30% tax credit while taking advantage of the money-saving benefits of energy efficient products. The tax credit was reinstated last fall, courtesy of the Bush Administration and at first offered only 10% credit on remodeled homes with a lifetime cap of $500. However, home owners were not very responsive to this plan, which soon yielded the triple increase of 30% and $1,500. The increased tax credits and extended deadline for applications have shown a boost in the already largely popular “going green” movement for a better future for the planet.
The incentives for home owners to remodel their homes for aesthetic value as well as energy value have helped older homes become environmentally friendly. According to a California study conducted in 2008, 70% of green house gas emissions are attributes to older homes built before 1983. With environmental and monetary benefits in mind, the tax credits have definitely proved to help the nation make strides towards energy efficiency while putting money back into the country’s pockets. However, these tax credits are not going to be accepted for much longer. The reinstated tax applications will end in just four months and it is vital for any home owner to submit now or lose out on their refund.
The tax credits are applied to products implemented from January 1, 2009 through December 31, 2010 with a $1500 maximum back for all combined purchases. If you’ve had anything from new roofing installations to energy efficient windows or skylights added to your home, you’re eligible for a tax credit.