Theres still time for home improvements that earn your homeowners cash back
The "fiscal cliff" was averted, but what does this mean to prospective clients? The answer: Now is an ideal time for homeowners--with your help--to check off some of those home improvement items on the ever-growing 'to do' list.
The bill, signed into effect on Jan. 2, restricts tax rates from increasing and, among other things, reinstates and extends tax credits for qualifying energy-efficient home upgrades between Jan. 1, 2012 through Dec. 31, 2013. With up to $500 in tax credits available with the purchase and installation of qualifying products, building professionals have an opportunity to secure additional services and help homeowners reduce their environmental impact.
In addition to the tax break, homeowners reap the benefits of energy-efficient upgrades for years, as these products can help reduce monthly utility bills. And, you can be their go-to resource for advice.
Whatqualifiesas an energy-efficient upgrade?
Insulation or insulation materials qualify if they meet 2009 International Energy Conservation Code requirements. The credit value to homeowners is 10 percent of insulation material cost.
ENERGY STAR®-qualified exterior windows and skylights, if ENERGY STAR®-rated, which can reduce homeowner energy bills seven to 15 percent. A 10 percent credit can be earned when homeowners select ENERGY STAR-qualified windows.
An energy-efficient tankless water heater can reduce monthly energy bills—in some cases up to 40 percent.* Qualifying tankless water heaters have an Energy Factor (EF) of at least .82. A $300 credit is available to homeowners opting for a more efficient way to heat water.
What documentation is needed to earn the tax credit?
Homeowners will need to file IRS Form 5695 with their taxes. They will also need to keep receipts proving when the equipment was purchased and a copy of the manufacturer’s certification. Accountants and tax advisors can provide additional guidance.
A complete list of qualifying energy-efficient products can be found on the Alliance to Save Energy website.
For more information on receiving the tax credit for a Rinnai Tankless Water Heater, visit www.rinnai.us/tankless-tax-credit.
*As based on the average cost to run an electric tank water heater per the DOE Average Energy Costs (www.doe.gov).