2010 was the year of the Energy Efficient tax credit. Although some state credits have expired or the states have run through the allotted funds, the Federal tax credits from 2010 have been extended by Congress in 2011! That’s great news for potential home buyers and current homeowners in Atlanta! These credits, coupled with excellent mortgage rates, continue to incentivize home buyers, home owners and home builders to renovate and build green. Here’s what RESNET has to say:
While many people mistakenly believe the $2,000 federal tax credit for new, energy-efficient homes ended in 2010, the good news is that Congress extended this tax credit through the end of 2011 (January 1, 2010 – December 31, 2011). Included in this tax package recently signed into law are extended tax credits for:
- Consumer purchase of energy-saving products. While restrictions exist t hat lower the credit to pre-economic recovery act levels, extended tax credits cover window incentives (up to $200), oil and gas furnace and boiler incentives to 95 percent efficiency (from $150-$200) and water heater and wood heating system incentives (up to $300).
- Manufacturer installation of energy-efficient appliances. A manufacturers’ credit exists for highly efficient appliances designed to save energy in new or existing homes (i.e., those with greater efficiency than today’s average appliances).
“This is a major win for hard-working Americans who build or buy energy-efficient homes, products and appliances,” said Steve Baden, executive director of RESNET. “In today’s politically charged era, our push to garner bipartisan support for improved home energy performance is a notable victory. Congressional extension of these benefits offers across-the-board stimulus, from lowering consumer utility bills to reducing dependence on foreign oil and improving the environment.”
To be eligible for the tax credit, a new home must be 50 percent more energy efficient than code. In 2009, 37,506 homes were verified for the tax credit. According to the Census Bureau, this represents more than 10 percent of all new homes that were sold in the U.S.
While homeowners who received these incentives in 2010 are ineligible for a repeat tax credit, those “on the fence” about improving their home’s energy performance may be spurred into action. Consumer rebates carry the potential to stimulate both environmental and economic gains. According to David Goldstein, Ph.D., energy director of the Natural Resources Defense Council (NRDC), “Homes account for more than 20 percent of the global warming pollution in the United States. Responsible energy action can achieve significant pollution reductions and tens of thousands of dollars in cost savings for each home.”
Looking to take advantage of the tax credits and renovate green? We can HELP! Our renovation loan products encourage green renovation and make it easy to renovate a new purchase OR your existing residence!
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