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Home Remodeling Projects That Can Reward You At Tax Time

As anyone who has ever tackled a home renovation project knows quite well, it can be both an exciting and stressful time. Although it is nice to look forward to an updated bathroom or kitchen or new set of windows, it can also be a pricey project that takes up a lot of time and money.

Fortunately, there are several home improvement projects that will reward people with a reduction in their taxes, or a credit or rebate. For homeowners who are interested in earning some green while making their homes more green in the process, the following resources offer information about the types of tax credits and rebates that are available:

The Internal Revenue Service

For anyone who is interested in tax rebate info, the IRS website is a great place to start. The site reports that people who made home improvements that made the residence more energy-efficient may qualify for a home energy tax credit. For example, the Non-Business Energy Property Credit is worth 10 percent of the cost of specific products that were used in a home. These include roofs, doors, windows and more. In addition, depending on what types of systems were installed, homeowners may also quality for a credit on HVAC units and water heaters. In order to get the tax credit, homeowners need to have written proof from the manufacturer that their product qualifies for the credit. This is important information to have when April 15 rolls around and taxes are due.

ENERGY STAR

The ENERGY STAR website is also a wonderful resource for people who are trying to choose the most energy-efficient remodeling projects for their home that will also reward them with a refund. For homeowners who are interested in switching from traditional power to solar power will find tax credit info on the ENERGY STAR site. Right now, the tax credit is worth 30 percent of the cost, with no upper limit. The same tax credit is also available on geothermal heat pumps and small wind turbines that are made for residential use.

In addition, homeowners who are hoping to replace their old windows with more energy-efficient models can often find information about possible rebates through the specific window company they are hiring to do the work. For example, Champion Home Exteriors is dedicated to offering homeowners replacement windows that will make the home more energy-efficient and save homeowners money on their heating and cooling bills. As a result, the Champion Home Exteriors website features helpful information about the ENERGY STAR label, and the company also sells windows that feature the trusted rating.

Database of State Incentives for Renewables and Efficiency

When it comes to learning what different renovation projects will allow in terms of rebates and tax credits, the DSIRE website is a one-stop information shop. The website, which is the most comprehensive source of helpful advice and info on energy-related incentives, is funded by the U.S. Department of Energy. The site includes information on all 50 states. Homeowners can simply click on their state to be taken to another page that features a long list of incentives, tax credits and other information on a wide variety of home improvements. For example, clicking on Texas brings up a long list of financial incentives that homeowners throughout the state may take advantage of, including the LoanSTAR Revolving Loan Program, and Utility Rebate Program information for different power companies.

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