Great Ways to Save On Energy Remodels PDF
Although the housing market throughout the Permian Basin continues to do well and Texas has five of the fifteen healthiest housing markets in the United States, according to Boyce Thompson, Editorial Director of the BUILDER group of magazines published by Hanley Wood, many home owners have begun looking for ways to remodel their homes that will save money on heating and cooling costs with energy-efficient improvements.  According to Energy Star, a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy, a typical household spends about $2,000 a year on energy bills.  By incorporating Energy Star appliances and other energy-efficient components to your home, they estimate a home owner can save about a third on his or her energy bill. Now homeowners have two great ways to save on their home remodels as well as their energy bills. First, the weekend of May 23 -25, 2009 has been designated as an “Energy Star Sales Tax Holiday”.  Products that qualify for this sales tax exemption are:
  • air conditioners priced under $6,000 (room and central units)
  • clothes washers (but not clothes dryers)
  • ceiling fans
  • dehumidifiers
  • dishwashers
  • light bulbs (incandescent and fluorescent)
  • programmable thermostats
  • refrigerators priced under $2,000.
Make sure to look for the Energy Star Logo on the products.  Only products with the Energy Star Logo will qualify for a “Sales Tax Holiday” purchase.  There are no limits to the number of qualifying items an individual can purchase and this exemption can be used on many internet and catalog sales, layaway sales and delivery and installation charges.  Go to www.window.state.tx.us to find out more about this great way to save. Second, the recent stimulus legislation signed by President Obama, not only renewed the previous energy-efficiency credits, but significantly improved them.  Before, home owners were able to recoup 10 percent of the cost of each approved energy upgrade with the lifetime cap of $500.  The new credit has tripled those amounts to 30 percent and $1,500, respectively.     “This is an excellent time for home owners to take advantage of these tax benefits to make positive changes in their home that will not only benefit them immediately, but over the long term as well,” said Eric Borsting, a California home builder and chair of the National Association of Home Builders (NAHB) green building subcommittee. What is included?Tax credits are available at 30 percent of the cost, up to $1,500, in 2009 and 2010 (for existing homes only) for:·         Windows and doors ·         Insulation ·         Roofs (metal and asphalt) ·         HVAC (heating, ventilating and air-conditioning)·         Water heaters (non-solar) ·         Biomass stoves  Tax credits are available at 30 percent of the cost, with no upper limit through 2016 (for existing homes & new construction) for: ·         Geothermal heat pumps ·         Solar panels ·         Solar water heaters ·         Small wind energy systems ·         Fuel cells Details on qualifying improvements are available on the Energy Star Web site at www.energystar.gov/taxcredits. How to Claim the CreditsHome owners can claim the 25C and 25D credits on IRS Form 5695 when they prepare their income tax returns. Be sure to retain records that include:
  • Name and address of the manufacturer
  • Identification of the component
  • Make, model or other appropriate identifiers
  • Statement that the component meets the 25C standards
  • Climate zones for which the criteria are satisfied
  • Additional information for storm windows, if applicable
  • Manufacturer’s certification — a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit
  To find a builder or remodeler in our area to help make your home more energy-efficient, contact us at (432) 520-7917 or visit the membership and Remodelers Alliance areas of this website.