The Obama Administration wants you to make your house more energy efficient and they're willing to pay you for it
. That's great news. Not only can you save money on gas and electric bills, but you can get a nice tax credit for it as well. The tax credits vary according to type of remodeling and how green the project is. Below is a quick summary of the types of green remodeling tax credits:
Home Energy Efficiency:
For energy efficient projects in the categories below homeowners can deduct 30% of the cost up to $1,500. Expires at the end of 2010.
Windows and Doors
Insulation
Biomass Stoves
Roofs
Heating, Ventilating, Air Conditioning (HVAC)
Water Heaters (non-solar)
You must be remodeling an existing home and it must be your principal residence. New construction and rentals do not qualify.
Renewable Energy
For renewable energy projects in the categories below, homeowners may deduct 30% of the cost with no upper limit. Expires at the end of 2016.
Geothermal Heat Pumps
Small Wind Turbines
Solar Energy Systems
You may be remodeling an existing home or building a new home. Both principal residences and second homes qualify. Rentals do not qualify.
Fuel Cells
For fuel cells in the categories below, homeowners may deduct 30% of the cost, up to $500 per.5 kW of power capacity. Expires at the end of 2016.
Fuel Cells (Residential Fuel Cell and Microturbine Systems)
You may be remodeling an existing homes or building a new home. It must be your principal residence. Rentals and second homes do not qualify.
Energy Star also operates an Energy Efficient Appliance Rebate program similar to Cash for Clunkers (although you do not have to turn in your old appliance). This program is administered through the states, so the appliances that qualify and the amount of rebate vary from state to state.