Five hundred dollars.
That’s usually enough to catch your attention. You may consider the options if faced with a $500 purchase. Certainly if you make a loan of $500, you are concerned about when it will be returned. But now, after having the opportunity to take advantage of the $1500 tax credit that was available through 2010, many people are not pursuing the opportunity for a $500 credit.
Wood stoves, pellet stoves, furnaces, air conditioners, water heaters, insulation, doors and windows – if you purchased any of these items this year, you probably qualify for the $500 credit. A new wood stove with an energy efficiency rating of at least 75 percent is good for an automatic $300 credit. A new boiler for your baseboard hot water heating system can qualify for $150, the same amount applies for a new furnace or central a/c system. If you’re “almost” ready for a new water heater, maybe the $300 tax credit will persuade you to make the purchase before a messy failure occurs with the old one. Roofing work – and the insulation involved can also qualify for the $500 credit.
For those larger projects, there are tax credits available for geothermal heat pumps, wind and solar energy systems. These projects qualify for a tax credit of 30 percent of the cost of the project – with no upper limit. That amount can truly be an incentive to go ahead with one of these far reaching home improvements. If you have been considering a new roof, check out the options for roofing systems with built-in solar panels, they’re not like the ones from the 1970’s. Also, that tax credit for 30 percent of the cost – includes installation expenses.
Whether it’s a new water heater, wood stove, air conditioner or roof, the tax credit is only the beginning of your savings for an “energy upgrade.” The continued savings will be evident in the reduction shown on your monthly bills and the only increase you’ll see is in your comfort level.
Don’t brood over it, hatch an idea – it’s $500, not chicken feed.