ENERGY TAX CREDITS
That big expensive home improvement project you've been wanting to do may not be that expensive after all. Now through December 31st 2010 the Federal Government is offering tax credits on major household items such as furnaces, central air units, windows, boilers, hot water heaters etc. For most of the products mentioned the Federal Government is offering 30% back on each unit you purchase up to $1500. "This is more like a rebate. If you owe the government $500 next year on your taxes, this credit will be added onto that. That means the government will now owe you $1000" says Joe Bennett over at Mohawk Heating and Cooling. Bennett adds that along with the government tax credits, companies and even National Grid are offering rebates at the same time and in most cases those are $500 alone. It's the type of savings Jeff Hannon took advantage of when he recently purchased a new furnace, central air system and all the duct work to go with it inside his delanson home. "Originally the project was going to run $8000. I'm coming in at about $5200." The only thing you'll have to make sure of, is that some units you buy are at least 92% energy efficient while others carry at least 95% efficiency rating requirement. For those that don't know how efficiency works. 95% efficient means 95 cents of your heating and cooling dollar is going to just that, heating and cooling your home. Five cents is being wasted. Most homes operating right now without the energy efficient systems come in somewhere around 80% at best.
MORE SAVINGS!
The federal tax credits aren't the only savings. Some Companies are offering their own rebates on certain models and in some cases it's as much as $500.
Not to mention National Grid has a rebate program available to many that will also give you $500 back after buying energy efficient products. For more information on National Grid's rebates, click below
http://www.nationalgridus.com/narragansett/home/energyeff/4_energystar.asp
For example, if your looking at buying a top of the line $5000 furnace. After deducting the $1500 Federal tax credit, $500 company model rebate if you qualify, and National Grid's $500 rebate, you're looking at paying only $2500 for the state of the art furnace. Mark Michalski over at NYSERDA (New York State Energy Research and Development Authority) says add on the month to month savings you'll receive after installing the energy efficient product. "You're looking at 10-20% off your monthly energy bill. If your energy bill is $200 per month, that's a 40 dollars savings per month, $480 for the year"
And guess what says Joe Bennett over at Mohawk Heating and Cooling "$480 savings every year for 5 years, you paid off that furnace."
With most of these systems having 15-20 year lifespans, it makes that big expensive purchase now, not look so expensive after all.
You can find a complete list of all the products and actual credits you'll receive by clicking the link below:
http://www.energystar.gov/index.cfm?c=products.pr_tax_credits
