Cape Coral Property....Making it More Energy Efficient
With the rising cost of fuel making everything we consume more expensive, it's more important than ever to make your Cape Coral home as energy efficient as possible. Not only will you save money on your monthly utility bills, but there are numerous federal tax incentives for residential home owners who make certain upgrades and install energy saving appliances. Most of us have noticed the Energy Star logo when shopping for a new washer, dryer, or water heater, but what does it really mean? Here's the savings breakdown along with available tax credits, up to date as of 2011.
Energy Tax Incentive
Home Envelope Credits - Sealing cracks and holes in your Cape Coral home will ensure even temperatures throughout, and reduce the cost involved in heating and cooling. By adding properly installed insulation to walls, ceilings, and attics, and installing high performance, energy efficient windows and doors, you can effectively keep the heat outside, where it belongs. Just this first step can greatly reduce your monthly cooling costs, while also providing a tax incentive.
Certain window films may be eligible for tax incentives. In order to qualify, the manufacturer must certify that the film meets the requirements of a qualifying insulation system.
Tax credits for these improvements are currently 10% of the cost, with a $500 per home cap. Certain improvements allow the cost of labor to be factored into the 10% credit (such as home heating and cooling systems), while other improvements (insulation and windows) includes material costs only. Windows and doors must meet the Energy Star guidelines to be eligible for credit. For a full explanation of the tax credit for each, check the Tax Incentives Assistance Website.
and Cooling Credits
- When shopping for a new heating and cooling system, keep in mind that air
conditioners and heat pumps are eligible for tax credits as well. Central air
conditioning units must meet the Seasonal Energy Efficiency Ratio of 16, which
is a 2009 standard set by the Consortium for Energy Efficiency. By purchasing a
unit that meets these standards, you will qualify for a credit up to $300.
Water Heater Credits - Look for the Energy Star logo when purchasing your next water heater and you can receive a tax credit that will cover up to $300 of your cost.
How to Actually Receive the Tax Break - In order to claim these improvements and be in line with IRS guidelines, you'll need to use the IRS Residential Energy Efficient Property Form 5695. You'll also need to obtain a copy of the manufacturer's certification for each energy efficient improvement. You can get the certification from the retailer or from the installer, depending on what type of improvement was made. You won't need to actually submit the certifications when you file, but keep them on hand in case the IRS has questions or asks for your supporting documents. Keeping records of all improvements, installation dates, and receipts, will make it much easier when tax time comes.
The above list includes some of the most common energy efficiency improvements you can make to your Cape Coral property. A full list is available on the Energy Tax Incentives website. Making these improvements now can also increase the value of your Cape Coral home and add to your home's selling points.
By David Sporleder | Sporleder-Ray Realty Group | firstname.lastname@example.org| Google+