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PrintHome Remodeling Guide - Tax lax for green remodeling
Few of us become environmental buffs overnight. Rather, we slowly glide through various shades of “green,” moving from “barely there” to a bright emerald. It often starts with just a recycling bin or a trip to the farmers’ market and continues with switching to CFLs and caulking windows for a more palatable energy bill. But can you handle the big-ticket items?
When it’s time for a serious housing project, you can save money — later and now — by tapping into a range of federal, state and local tax credits while “greening” your home. Here is how:
Federal “Green” Grants
With an environmental focus in the Obama administration’s economic stimulus package, now is the best time to exploit federal programs. In most cases, the tax relief applies to remodeling primary residences (where you live) and does not include installation costs.
- Save up to $1,500 on energy-efficient heating and cooling units, insulation, heat-resistant roofs, tightly sealed windows and storm doors. Do these upgrades in 2010 and apply before Dec. 31. Consider:
Biomass stoves. These churn through agricultural crops and trees; wood and wood waste and residues; plants; residues; and fibers for up to 75 percent more energy efficiency.
Heating and cooling units
- Air-source heat pumps work like fridges, making cooler space colder and warm space balmier. Best for moderate climates.
- Gas, propane and oil water boilers use water circulated through the home in a system of baseboard heating units, radiators and/or in-floor radiant tubing.
- Gas, propane and oil heaters with a 90 percent thermal efficiency and a near-1 Energy factor qualify.
Insulation. Includes batts, rolls, blow-in fibers, rigid boards, expanding spray and pour-in-place as well as air-sealing products that come with a Manufacturer’s Certification Statement.
Roofs. Look for metal roofing with fit-pigmented coatings or asphalt shingles with qualifying cooling granules. In the summer, these surfaces will make the roof 100 degrees Fahrenheit cooler and block heat from seeping into the house.
Windows. Select windows that will meet the test for: 1) how much heat escapes (look for a low, 0.3 U-factor) and 2) how much heat invades (look for a low, 0.3 SHGC rating).
Doors. Both storm doors and windows alleviate energy losses that are typical of older windows and doors by creating an extra barrier with the outside.
- With no cost limit, receive a 30 percent tax credit on geothermal heating units, wind turbines and solar panels.
- Instead of outside air, geothermal units use the ground’s natural heat.
- Wind turbines work best if your house sits on top of a hill, in a wind tunnel or is otherwise exposed to breezes.
- Tulsans enjoy an average of 227 sunny days a year, making solar panels a winning choice.
- Pocket a 30 percent tax credit on up to $500 per 0.5 kilowatts of power capacity for a fuel cell and microturbine system. This promises to be the breakthrough technology to fuel the country in the future.
Explore qualifying products, efficiency requirements, tax credit application rules and FAQs on the Energy Star Web site: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index. Also, learn what to ask for when working with contractors.
State “Green” Grants
In March, Oklahoma will begin offering approximately 23,000 rebates for Energy Star appliances on a first-come, first-serve basis. Save $100 to $250 when replacing an old fridge, water heater, air conditioner, gas furnace or washing machine. There is a maximum of two rebates per household. For details, go to http://www.okcommerce.gov/recovery/?page_id=1088 or call (888) 363-7289.- Lower-income families can get an average of $6,500 for home weatherization improvements, such as replacing broken windows, caulking and weather stripping, air sealing, and heating and cooling adjustments. For details, go to http://www.okcommerce.gov/recovery/?page_id=63 or call (405) 815-5339.
- PSO offers discounts on refrigerators, lighting and air conditioners that qualify for Energy Star standards. For details, go to http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=OK24F&re=1&ee=1.
- Oklahoma Wind Power Initiative with The University of Oklahoma loans anemometers to measure whether a certain location makes sense for installing a wind turbine: http://www.windpoweringamerica.gov/filter_detail.asp?itemid=591.
