Feature Articles - Housing
Energy efficiency can pay off at tax time
For Missouri homeowners, it might be a good time to invest
in making our houses more energy efficient, said a
University of Missouri Extension housing and environmental
design specialist.
The federal stimulus plan signed into law in February 2009 includes tax credits for making household energy-efficiency improvements such as additional insulation, new windows and upgraded heating or cooling systems, said Barbara Buffaloe.
In addition, a number of Missouri utility companies offer their own incentives such as rebates and low-interest loans, she said. Another incentive, of course, is the money households can save in the form of lower utility bills.
Under the American Recovery and Reinvestment Act of 2009, homeowners can receive tax credits for certain energy-efficiency improvements to existing homes. These are similar to tax credits introduced in 2006, which let homeowners claim 10 percent of the cost of the improvements up to $500. The new program boosts the credit to 30 percent of the cost up to $1,500.
Eligible improvements include windows, exterior doors, insulation, metal or asphalt roofs and heating/cooling systems that go into service in 2009 and 2010, Buffaloe said.
To qualify, improvements must meet certain specifications under the U.S. Department of Energy’s EnergyStar rating system, she said. Details are available online at www.EnergyStar.gov.
The $1,500 cap covers both 2009 and 2010, notes Andrew Zumwalt, MU Extension financial planning specialist. “If you blow through all $1,500 in 2009, you can’t get any more in 2010,” he said.
The cap doesn’t apply to certain big-ticket items, including geothermal heat pumps, solar water heaters, and wind, photovoltaic or fuel cell power systems.
Before investing in a costly household alternative-energy system, however, Buffaloe advises homeowners to focus on weatherizing doors, windows, attics, etc.
“Do everything possible on the conservation side first,” she said. “Otherwise, you’re just losing more-expensive energy.”
Many people don’t realize the amount of heat lost through seemingly insignificant spaces, she said. “If you were to look at your front door and see an eighth-of-an-inch gap around the door, you might think that’s not that much. But if you were to add up the area, it’s equivalent to a hole six inches in diameter. If someone were to punch a six-inch hole in your wall, you’d fix it.”
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For more information from MU Extension on energy conservation and personal and family finances, see http://missourifamilies.org/housing/energy/ and http://missourifamilies.org/money/.
For more information about energy tax credits, loans, rebates and other incentives, see http://www.dnr.mo.gov/energy/financial/.
Story sources:
Barbara Buffaloe, LEED A.P., M.S., housing and environmental
design specialist, Architectural Studies, University of
Missouri Extension
Andrew Zumwalt, M.S., associate state specialist, Personal
Financial Planning, University of Missouri Extension
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Last update: Wednesday, May 06, 2009
