Home-Energy Improvement Tax Breaks May Help You Save Money
It’s no secret — the cost of energy is skyrocketing. Think back twenty years ago. If someone had told you we’d be spending this much in energy costs, would you have believed them? Probably not. You probably would have laughed till your side ached. While soaring energy costs definitely hurt our budgets, there are ways to alleviate some of the pain. If you’re not taking advantage of the home-energy improvement tax breaks, you may be wasting money that would be better spent on something else.
Doors and Windows
If your home has drafty windows or doors, hot air might be escaping through the same leaks that allow cold air in. Many people would be surprised at how much heat could be conserved if their homes had doors and windows that offered proper protection from the elements. If your home isn’t updated with weatherproof windows, you might want to consider investing in some. Not only will you save money on energy costs, but you may be eligible for a tax credit of ten percent of the cost of the materials, up to a total of five-hundred dollars.
Furnaces and Boilers
If your doors and windows are fine but you have a furnace or boiler that should be updated to a more energy-efficient model, the home-energy improvement tax break can provide you with a tax credit for one-hundred percent of the cost of qualifying expenses up to one-hundred and fifty dollars.
Most of us don’t have enough cash in our pockets to pay for all of the energy-saving improvements we could make. If you want to take full advantage of the home-energy improvement tax breaks, you can either take out a home equity loan to pay for the improvements (which will allow you to deduct the loan’s interest as well) or, if your state or local utility provider offers it, you can obtain low-interest financing for your home-energy improvement needs.
If you can’t afford the improvements at all, regardless of how low of an interest rate you may qualify for, you may want to look into one of the many weatherization assistance programs available for low to moderate-income families. While you won’t get a tax break, you will get the financial aid necessary to make home-energy improvements to your home. Check with your local human services agency to determine exactly which services you qualify for.