The Silicon Valley Association of REALTORS® would like to remind homeowners that they have less than two months to take advantage of the U.S. energy tax credit, which can help save them energy and reduce their utility bills with energy-saving home improvements. On Dec. 31, federal tax credits expire for purchases of insulation and energy-efficient roofs, water heaters, windows, doors, HVAC systems and biomass stoves.
The American Recovery and Reinvestment Act (ARRA), the stimulus legislation signed by President Obama after he took office, offers a tax credit of 30 percent or up to $1,500 for certain qualifying energy-saving upgrades. The energy efficiency home products must be "placed in service" between Jan. 1, 2009 and Dec. 31, 2010. The credits are only valid for improvements made to the taxpayer's principal residence, except for qualified geothermal, solar, wind property, which can be installed on any home used as a residence by the taxpayer.
"Homeowners should act soon if they'd like to take advantage of up to $1,500 in tax credits, as they expire at the end of the year," said Jeff Bell, president of the Silicon Valley Association of REALTORS®. "It's a good idea to act now before winter sets in. Making these changes will not only benefit homeowners financially with the tax credits and the energy savings they'll receive in the long-term, but these changes will also benefit our environment.
Homeowners can save a third of their energy bill by incorporating energy saving features and appliances in their home. According to Energy Star, a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy, a typical household spends about $2,000 a year on energy bills.
Tax credits are available at 30 percent of the cost of the materials, up to $1,500, until Dec. 31, 2010 (for existing homes only) for:
• Insulation
• High-efficiency windows and doors
• Roofs (metal and asphalt)
• HVAC (heating, ventilating and air-conditioning)
• Water heaters (nonsolar)
• Biomass stoves
Consumers can receive a 30 percent tax credit if they install any of the following systems before December 31, 2016 (the previous tax credit cap no longer applies).
• Geothermal heat pumps
• Solar panels
• Solar water heaters
• Small wind energy systems
• Residential Fuel cells
For more information about the federal tax credits for energy efficiency, visit the Energy Star website at http://www.energystar.gov/.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.