The much larger cost fixes.
What else can you do now or in the future? Replace appliances, heating units, light fixtures and bulbs with high-efficiency replacements.
Unfortunately, it costs money to save money. But it’s good to keep in the back of your mind that many experts recommend buying high-efficiency windows and appliances as their predecessors wear out and you need to replace them anyway. Over time, the extra cost is recouped in improved efficiency.
- Window replacement. While an adequate vinyl window might cost $100-$150, a double-paned window with a low e-rating can cost $50-$100 more. That can add up when you’ve got 17-24 windows in your house. You can add energy-saving$50-$100 per window for a professional carpenter to install them and it should not cost over $250 per a standard size window. You can either finance a total window replacement or replace a few windows as you save for it.
- Furnaces over 20. Celebrating the 20th birthday for your furnace can be a wonderful but expensive day. According to Energy Star that’s the year you’re probably paying far more than you use to for it. Energy Star is a federal-government-backed program that promotes energy efficiency and that lends its name to energy-saving products. Furnaces bearing the Energy Star label are about 15% more efficient than a standard conventional older model. No need to worry about the cost of a new furnace it will pay for itself in 3-4 years.
- No power costs money. Did you know that when a house looses its electric power that it looses its core temperature, refrigerator temperature, water filtration, blowers, fans and lighting. Appliances will need to run sometimes up to 1.5 hours to fully recover from a sudden power loss. Install a back up power system it will pay for itself in just a few outages.
Note: Many utilities offer discounts or rebates on energy-saving products. Call and ask your local utility company. Financing is sometimes available for major improvements that will incorporate energy-efficient products or to purchase a high-efficiency home.
Energy Tax Credit for Principal Residence 2010-2011
First of all the energy tax deductions must be for your existing home and your principal residence. This tax deduction does not apply to new construction or rentals. The tax credit is for 30% of the cost up to $1,500 for the following items;
- Biomass Stoves
- Heating, Ventilating, Air Conditioning (HVAC)
- Roofs (Metal & Asphalt)
- Water Heaters (non-solar)
- Windows & Doors
Existing Homes & New Construction Principal Residence & Second Homes
This energy tax credit does not apply to rentals, but it will save you 30% of costs with no upper limit. The items listed here will qualify for this energy tax credit;
- Geothermal Heat Pumps
- Small Wind Turbines (Residential)
- Solar Energy Systems
Existing Homes New Construction Principal Residence
This energy tax credit does not apply to rentals or second homes. You will save 30% of the costs and up to $500 per .5 kW of power capacity.
- Fuel Cells (Residential Fuel Cell and Micro Turbine System)
Tax credits are generally more valuable than a tax deduction because a tax credit reduces tax dollar for dollar. If you want to lower your energy bills, reduce air pollution, increase indoor comfort, lower gasoline costs, and release fewer emissions into the atmosphere then, please purchase fuel efficient vehicles and energy efficient appliances.
Federal Tax Incentives State Rebates
Some products will qualify for federal incentives and some will be eligible for state rebates. There are also state incentives for energy efficient homes, vehicles and equipment. You may want to check the online for each state’s energy office for more information on specific state tax information. I included some helpful links at the bottom of this page.
Learn More about Federal Energy Tax Credits & Deductions
If you would like more information about tax deductions or credits for energy efficiency you should visit your accountant. They have 100s of articles in their support section for just anything to do with taxes. Don’t miss out on one single deduction you deserve to claim when you file your taxes this year. Make sure your energy tax credit deduction doesn’t slip through the cracks and you get the biggest tax refund possible!