(Two weeks ago, I kicked off a series of posts in which I’ll document the transformation of an old barn into my future workshop.)
As the world’s big wigs convene in Copenhagen to address climate change, it’s important that we do our part here at home. For this little wig, that means renovating the barn in an energy-efficient manner. Fortunately, the recent stimulus package includes plenty of tax incentives to do just that.
Politics aside, the American Recovery and Reinvestment Act of 2009 has kick-started a new wave of responsible renovation. No longer is "green" construction all about the Benjamins baby! In fact, the economic stimulus brings new meaning to the word "greenback": Americans are currently eligible for a 30% tax credit towards the cost (up to $1,500 per year) of energy-efficient home improvements. Now, we needn't sacrifice sustainability in renovating the barn — the tax break turns a new wood stove, insulation and Energy Star windows into affordable solutions for curbing our energy bills. Below is a longer list of eligible products:
Biomass Stoves – Wood, wood pellet and biomass stoves that offer a minimum 75% “thermal efficiency value” are eligible. Installation costs are included in the tax credit.
Heating, Ventilating, Air Conditioning (HVAC) – Energy-efficient circulating fans, heat pumps, central air units, boilers and furnaces are covered. Speak with an HVAC specialist for further details on eligibility. Installation costs are included in the tax credit.
Insulation – Installing insulation is a quick and easy way of improving your home’s energy efficiency. The tax credit covers insulation that meets IECC code, but does not cover installation.
Roofs (Metal & Asphalt) – Only Energy Star certified roofs qualify for the tax credit. These metal and asphalt roofs better reflect the sun's rays, improving energy efficiency in the summer months. Installation is not covered.
Water Heaters (non-solar) – Heating your home's water can amount to a quarter of your energy usage. Look for a model that has a “thermal efficiency value” of 90%. Installation costs are covered.
Windows, Doors & Skylights – Installing Energy Star certified doors or windows will significantly lower your monthly heating bills. Installation costs are not included.
Window Coverings – Currently, Hunter Douglas brand Duette Architella shades are the only energy-conserving window shades eligible for energy efficient tax breaks.
For further details on the tax credits, visit the Energy Star site here.
Images: 1 Treehugger , 2 RAIS , 3 Henderson & Daughter
Johnny is currently blogging his experience as a student and amateur woodworker. You can keep track of his projects on his blog, Woodlearner.
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Comments (11)
Oh, brother. I mean, Oh Big Brother! Is there no end to the arrogance of government thinking they can make better decisions than the individual citizen? If it's in my best interest to make home improvements, it should be my responsibility to pay for it.
Perfect timing for us, as we're replacing some drafty, old windows. Too bad installation isn't included. That can cost as much or more than the windows themselves.
seriously doctor? you don't see where it benefits everyone to encourage this kind of thing?
don't you realize that oil companies and energy producers have been government subsidized for years?
DoctorBison.
These stimulus subsidies are in place to encourage spending during the recession and to especially encourage spending on environmentally friendly building practices.
I don't know about you, but I have a bigger problem with "Big Brother" telling gay people that they don't have the same rights as heterosexuals. Maybe that's just me though.
Johnny,
The barn is looking great!
ec05, Yes, I do realize that many companies are subsidized by the government and it is wrong in every instance. The government exists to protect our rights, not to "encourage" certain behaviors.
Vanessa in New York, Encourage spending during a recession? That's like encouraging an alcoholic to take another drink. Not a wise move.
By the way, I agree that the government should recognize all marriages between two consenting adults, regardless of gender.
doctor I guess you're right, energy independence doesn't have anything to do with national security or anything else of interest.
dumb government.
I'm happy to see that our government is encouraging responsible behavior. My home needs several improvements; I'm looking forward to the tax breaks.
CallDoctorBison,
Applying for tax credits is optional. You are free to make improvements to your home without applying for the credits.
Johnny, "little wig" cracked me up. Marry me.
True, applying for the tax credits is optional... but, paying the taxes (and therefore other people's home improvements) isn't. What if I want to build 10 windmills in my backyard? Where's the tax credit for that? Government subsidizing window coverings, skylights, and biomass stoves... please excuse me if I find this all a bit weird, unnecessary, and unconstitutional.
CallDoctorBison - Given your user name, you may be a doctor, you may even be an Indian chief, but obviously you're not a lawyer. There's nothing unconstitutional about these tax credits, just as there's nothing unconstitutional about the existing tax breaks for health insurance (you know, the kind that pays you "doctors") or tax deductions for losses on investments or gambling. You may not like them (in which case, by all means, vote against those who enacted them), but their constitutionality is not a subject of serious debate.
As for whether they are good policy, that's another question. I think that on balance, they're probably a good idea -- they add value to the economy not only by spurring demand at the nadir of a recession (and obviously the "Doctor" isn't an economist either -- one needn't be a diehard Keynesian to realize that government spending can take up some of the slack in private spending in a recession), but by directing some of that induced spending toward energy-saving investment that should yield continued savings in the year to come. (Even if one believes, as one suspects the good "Doctor" does, that the US ought to be burning coal like mad to fuel its economic progress, the energy conserved by households' weatherizing is energy that can be put to other uses, whether that use consists of making widgets, or driving humongous SUVs to distant shopping malls, or simply saving some leftover fossil fuel for a rainy day.) Moreover, many of investments make economic sense in the mid- to long-term, but are expensive to consumers in the short term. If consumers have a long time horizon and access to cash or credit to make the improvements, for the most part, these improvements make economic sense -- but with both cash and credit in shorter supply for consumers these days, the tax breaks will likely encourage some energy-saving improvements that make economic sense, but nevertheless wouldn't happen without the breaks.
That said, these don't seem like the most surgically-directed tax credits, and there's undoubtedly a fair amount of non-energy-saving waste associated with them. E.g., if I opt to replace 15 of my leaky old windows with plain-vanilla energy-efficient ones, I could get a $1500 tax break. Or I could take a nicely-insulated wall, cut 3 new holes and add 3 fancy-schmancy low-e windows that cost 5 times as much as the vanilla ones, and get the same tax credit, while actually reducing efficiency. So not every recipient is going to end up saving energy. And of course, many people might have been planning to make these improvements anyway, so for them, the tax credits are just a lucky windfall. (Those of us who still think Keynes's ideas hold some water can see that even the improvements that don't improvement overall efficiency can still help stimulate the economy, though.)
Anyway, to those whom the tax breaks are spurring to improvement their energy efficiency, good for you. And to those who were planning to improve your home's energy efficiency anyway, good for you, too. And to those of us who will benefit from having many American households using less energy to heat and cool their homes, good for us!
Oh, and Johnny, nice barn!