Tax Credits & Grants For Energy Efficient Housing

Tax Credits & Grants For Energy Efficient Housing

A bill was recently passed providing many provisions for realtors and home buyers. The energy efficient housing tax credits and grants promote green jobs and energy independence; ARRA invests in efforts to make homes and buildings more energy efficient.

This bill provides state and local governments with grants to perform energy audits, retrofits and income tax credits. by 2010, homeowners will be able to claim a 30% tax credit for purchases of new energy efficient furnaces, windows and insulation.

Home owners can apply for this on their income tax return; qualifying home improvements must be completed between January 1, 2009 and December 31, 2010 and they must be performed on the tax payer’s principal residence. Some second homes can qualify for certain improvements including geothermal heat pumps, solar water heaters, solar panels and small wind energy systems.

A maximum of $1,500 can be claimed for this credit for 2009 and 2010 home improvements. New home construction credits can be claimed for geothermal heat pumps, photo-voltaic, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.

Use the IRS Tax Form 5695 to calculate your energy credit for home repairs in 2009 and 2010.

Funding will be obtainable to update the nation’s electricity grid and to install smart meters on homes to help save consumers money. Additional funding will assist low-income households with weatherization assistance and to fund federally assisted housing (Section 8) efficiency efforts.

Other provisions of the Stimulus Plan include:

First Time Homebuyer Tax Credit

FHA, Fannie Mae and Freddie Mac Loan Limits

Neighborhood Stabilization

Commercial Real Estate

Rural Housing sets

Low Income Housing Grants

Tax Exempt Housing Bonds

Transportation Investments

Broadband Deployment

specialized real estate agents should be familiar with the various tax motive and credits obtainable to home buyers and home owners. These credits are helpful to first-time home buyers who, quite often, are not aware of the programs they could be employing. A specialized real estate person can advise their clients of these helpful programs to assist them in their real estate investing or home buying experience.

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