Fixing up and staying put: energy-saving tax credits

Helpful advice from the Better Business Bureau With the economy in slow mode, many consumers find themselves less attracted to the greener grass of a newer home in a nicer community. Indeed, in tough economic times, being practical and content with what you have is wise. After all, part of the housing bubble was a result of too many people attempting to live beyond their means. We are all paying for the risky and irresponsible loans that were given out. Given the interest in staying put, fixing up your abode may be on your things to do list. Now is a good time to do it. Home improvement contractors are eager for business and their prices often reflect this. In addition, you can take advantage of tax credits being offered by the Federal government while increasing home energy efficiency and helping the environment at the same time. The American Recovery and Reinvestment Act of 2009 included several new and expanded tax credits that homeowners can take advantage of to increase the energy efficiency of their homes. According to Remodeling Magazine’s 2008-2009 Cost versus Value report, energy efficient replacement projects are some of the best bets for recouping money at resale. Some qualifying improvements include routine work that every homeowner must undertake now and then, such as installing a new roof. However, other qualifying improvements are more involved including installing a wind or solar energy system. Increasing the energy efficiency of your home is one way to cut down on monthly bills, and now is a great time to make some modest home improvements to take advantage of federal tax credits and boost resale value. Many home improvement companies are advertising the tax benefits. Before making any improvements, visit www.energystar.gov/taxcredits to confirm that the products being used are eligible for the tax credit.