Eco Friendly Real Estate Blog

We have heard ALL THE RAVE about how the Stimulus Bill had a ton of Energy Efficient Tax Credit stuff in it.  No cap on Solar and Geothermal - 30% up to a MAX of $1500 on Energy Efficient Improvements ...

One of the best parts of that is being able to get up to $1500 back for New Windows.  You know, those crummy single pane windows that you would love to rip out.  But, Hold On!  Have you read to see what qualifies?  I went in to Home Depot the other day and not a SINGLE WINDOW QUALIFIED that they had in there.

That does not mean that the product was bad.  That's not the case at all.  As a matter of fact, the majority of windows that are Energy Star Rated will not qualify.  The Guidelines to receive the Credit are very strict.  The U-Factor AND Solar Heat Gain CoEfficient BOTH have to be = or Below .30

To get the Scoop I went to visit Bob Birner with Renewal By Andersen Windows.  You may also know Bob as the Host of the Home Improvement Hotline on Sunday morning from 9a-12p.  If you are wanting to change out your windows and reap the benefit of the $1500 - Make sure that you listen in so you are not an angry Tax Payer next year.  By the way, all of you folks in the Houston area - Bob has Windows that qualify under both ratings.

The Stimulus Bill, it's rather confusing.  I have previously posted some of the Positive Sides to the Bill and this is part 3 of my Energy Efficiency Tax Credits in the '09 Stimulus Bill.

If you have been following my Webinar Series through 'Turning Houston Green' on Greening the Existing Home, you know that this Saturday, Michael Strong and I will be going over Water and Lighting Fixtures.  Part of this will be in regards to Energy Efficient Water Heating Solutions which includes Tankless and Solar Water Heating.

In doing our research, we noted that the Stimulus Bill changed the Tax Credits for this also.  Because the changes go through 2010, we think it is important for people to understand what it is you can actually get with your Tax Credits.  Be an educated consumer so that you can make the most of you upgrades.

So, here's the 411:

Tankless Water Heaters - Whether you get one that is Gas or Electric, it still needs Electricity.  Why?  There is an actual start for these babies to kick in and start heating your water.  So, with a Gas Tankless Water Heater, it still uses ELECTRICITY to start up.  THEN uses the Gas to heat the water.  This means that during a power outage, you will STILL NOT HAVE HOT WATER.  Because of this, Tankless Hot Water Heaters fall under the Energy Efficiency portion of the Stimulus Bill.

What does that mean to you?  You can get a Tax Credit for 30% of the purchase UP TO $1500 on ALL of your Energy Efficient Improvements - (such as windows which will be another post)  Max.  That's It.  $1500.

Now, Solar Water Heating:

This is considered to be Renewable Energy.  No electricity or gas is really required.  That means that you are solely using electricity derived from a Renewable Source, in this case THE SUN.  During a power outage you WILL HAVE Hot Water.  (not that the power outage has anything to do with, just making a point)

For these reasons, it falls under a completely different category.  Actually, it falls under the same category as GeoThermal and traditional Solar Panels. 

What does this mean to you?  You can get a Tax Credit for 30% WITH NO CAP!! 

Personally, I would use the Energy Efficient Tax Credit for Windows, Insulation, etc. and maximize by upgrading to Solar Hot Water.  You can only get a Maximum One Time Tax Credit of $1500 for Energy Efficiency, yet there is no cap on Solar/Renewable Energy right now. 

With a typical cost of $5000 for Solar Water Heaters - That would give you an ADDITIONAL $1500 Tax Credit if you are making other Energy Efficient Improvements to your home. 

Just a little food for thought.  To sign up for our Webinar Series on Saturday for more details on the Benefits of Energy Efficient Water Fixtures in your home, you can register here.

***Source:  Pages 125-127 of the Division B Tax, Unemployment, Health, State Fiscal Relief and Other Provisions from the Department of Energy Website***

***Photos:  These are from Houston's First LEED Certified Home Built by Greenhaus Builders***