Making Your Home More “Green” Could Save You Some Too

Everyone seems to be thinking “green” these days and homeowners and those looking to buy are no different. Homes that are more energy efficient not only help the environment and are healthier to live in, but can also mean more money in your pocket through increased tax credits and savings on energy costs.

The American Recovery and Reinvestment Act of 2009, tripled the tax credit for homeowners who make energy efficiency upgrades to their homes. Among the qualifying upgrades:

• Installing energy-efficient windows and doors, metal or asphalt roofs, insulation, furnaces, air conditioners and water heaters that qualify under the Energy Star program could be eligible for tax credits equaling 30 percent of the cost, up to a maximum of $1,500. To qualify for the tax credit, the improvements must be installed and ready to use between Jan. 1, 2009 through Dec. 31, 2010.
   
• Bigger improvements – such as installing geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells – can also qualify for tax credits equaling 30 percent of the cost, but aren’t subject to the cap. Those improvements can be made through 2016. The Energy Star website, www.energystar.gov provides more detail on which housing materials qualify.

There are other things homeowners can do to make their homes more environmentally friendly. Replace old appliances with more energy-efficient models. Use recycled and locally-sourced materials when you can. Replace old toilets with low-flush versions and install low-flow showerheads to conserve water. More and more REALTORS® are becoming advocates for the benefits of “green” housing. And a growing number are even earning Green designations to better help buyers and sellers who care about energy efficiency and environmentally-sound building practices.

To learn more about the energy efficiency tax credits available through the Energy Star program, go to www.energystar.gov.