Post by Mike Blank, MBC Building & Remodeling

The government is currently giving up to $1,500 in tax credits to homeowners who remodel their existing (principle) residence to reduce energy consumption. A lot of people think this tax credit only applies to replacement windows, but it is actually much more encompassing. The official name for the program is the Existing Home Retrofit (25C) tax credit and it extends to replacing insulation, doors, skylights, water heaters, heat pumps, central air conditioning, and metal or asphalt roofs.

Exisiting Home Retrofit (25C) at a glance:

Up to $1,500 can be claimed for all qualifying products placed into service by 12/31/10 for most home improvements. Tax credits are available at 30% of the cost, up to $1,500, in 2010 (for existing homes only) for:

• Windows and Doors
• Insulation
• Roofs (Metal and Asphalt)
• HVAC
• Water Heaters (non-solar)
• Biomass Stoves

Improvements made in 2010 will be claimed on your 2010 taxes.

There’s also a tax credit of 30% of cost, with no cap, for alternative energy sources such as geothermal heat pumps, solar panels and solar water heaters. This credit can be applied to any home that you use as a residence (not just your principle) and new construction as well.

PLEASE NOTE that not all projects or products are eligible for tax credits. Be sure you check all of the guidelines to make sure your project will fall within the required conditions to be eligible. The National Association of Home Builders (NAHB.org) is an excellent resource for information on the tax credit program. You can also go to IRS.gov for all of the guidelines, while a wealth of product information can be found at EnergyStar.gov/taxcredits.

Mike Blank, CGR CAPS, President

MBC Building & Remodeling, LLC

cell: (717) 371-5136