Just Announced Virginia Residential Energy Efficiency Rebate Program
Virginia homeowners can receive a rebate for energy efficiency improvements and retrofits (rebate amount not to exceed 20% of the cost up to $2,000 per household), plus up to $250 of the cost of having an energy audit conducted. So with the Virginia State and Federal tax credits - which Ardently Green will assist you with - a homeowner can get a basic audit and $7K of work done for $3500!
The Residential Energy Efficiency Rebate Program will provide $7 million for energy efficiency improvements and retrofits made by Virginia homeowners for replacement of major systems equipment, which may include:
- central A/C
- heat pumps
- water heaters
- window replacements
- programmable thermostats
The New Stimulus Bill Pays Back Green
Information courtesy of EnergyStar
On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are:
- The tax credits that were previously effective for 2009, have been extended to 2010 as well.
- The tax credit has been raised from 10% to 30%.
- The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
- The maximum credit has been raised from $500 to $1500 for the two years (2009-2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
- The $200 cap on windows has been removed, but the requirements for windows has been increased significantly. Not all ENERGY STAR qualified windows will qualify.
For more details check out the Summary of Tax Credits for Homeowners
What This Means to You?
In one word: savings! Tax credits for your home can help reduce the amount of income tax you have to pay at year’s end. When compared to a tax deduction, a tax credit is generally more valuable because it reduces tax dollar-for-dollar while a deduction only removes a percentage of the tax that is owed. In other words, the credit increases the tax refund you receive or decreases the amount you have to pay at the end of the year. Please refer to the final Internal Revenue Service (IRS) rules to determine what qualifies for the tax credit.
It should be noted that not all ENERGY STAR qualified homes and products qualify for a tax credit. These tax credits are available for a number of products at the highest efficiency levels, which typically cost much more than standard products. If, for whatever reason, you decide not to purchase a product covered by the tax credit, you may still consider purchasing an ENERGY STAR product. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.