The Tax Credit Is Expiring

Many people know that the Bush Tax Cuts are set to expire Dec 31st. How many people know that the Green Energy Tax Credit is also expiring on Dec 31st? You‘ve seen it in stores – it’s the energy star efficient label that tells people they can get up to $1500 tax credit for using energy star efficient appliances. The tax credit also applies to people making green energy improvements to their homes. Simply put in an energy efficient water heater, a furnace, an air conditioner, windows, a heat pump, or a green roof and you get up to a $1500 tax credit. Plus you also get the benefit of saving on monthly utility bills. According the National Association of Home Builders, some people can save one third of their year’s utility bill by using an energy star washer and dryer.

The NAHB is currently urging Congress to extend the tax credit past Dec 31st, but as of now, there is no news. Given the fact that Washington has bigger problems on their plate right now, I would not be surprised to see this slip through the cracks and end. With that said, if you were hoping to take advantage of the credit, you may want to put a water heater on this year’s Christmas list. Just make sure that you buy it before Dec 31st.

The tax credit will continue to December 31st 2016 for homeowners who want to tackle bigger projects. The Federal Government will allow you to take a tax credit of up to 30% of the cost with no upper limit if you are looking to install solar panels, wind turbines, or a geothermal heating system. Geothermal has really picked up steam (no pun intended) in the last few years as the cost to implement the systems have come down and more builders recognize it as a big selling feature. This credit applies to new home construction, existing real estate sales, primary residences, and second homes. Sorry, but rental homes do not qualify for the credit.

You can get more information about the kinds of products that qualify and the tax credit by visiting NAHB.org and energystar.gov.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

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