Joel Barkman, NVIA Fauquier County Chapter President

Tax Credits for "Going Green"

by Joel Barkman

Everything seems to be "going green" these days - from cars, to companies, to coffee. However, sometimes it can be hard to tell what that really means, especially when it comes to your home.

Building green means incorporating environmental considerations and resource efficiency into every step of the home building and land development process to minimize environmental impact. During the design, construction, operation, energy and water efficiency, lot development, resource efficient building design and materials, indoor environmental quality, and homeowner maintenance should all be considered.

Today's green homes incorporate not only climatic considerations, but are resource and energy efficient, safer for occupants, and often less expensive to maintain.

Thanks in part to the NAHB's involvement and its commitment to the recently approved National Green Building Standard we now have a better understanding of what "green" is; but what does it cost?

With government funds (in the form of tax credits) provided by The American Recovery and Reinvestment Act of 2009, "going green" is costing less.

The tax credits that were previously effective for 2009, have been extended to 2010 as well.
The tax credit has been raised from 10-30 percent.
The maximum credit has been raised from $500 to $1500 for the two years (2009-2010).
Improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1500 maximum cap and are available at 30 percent of the cost.
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 those who are building or planning to build a new home, a 30 percent tax credit (including labor and installation), with no upper limit, is available through 2016 for:

Solar-electricity, or photovoltaics (PV) converts sunlight directly into electricity. PV can provide electricity for residential and commercial buildings, including power for lights and air conditioning and can also be a convenient source of power for pumping water, electrifying fences, or aerating ponds in remote applications.
Solar water heaters reduce the need for conventional water heating by about two-thirds. It minimizes the expense of electricity or fossil fuel to heat the water and reduces the associated environmental impacts.
Geothermal heat pumps are used for space heating and cooling, as well as water heating. Its great advantage is that it works by concentrating naturally existing ground temperature, rather than by producing heat/cooling through combustion of fossil fuels.
Fuel cells and small wind energy systems have not yet gained popularity in this country but have been used with great success oversees to produce clean, quiet, and highly efficient energy.

For those interested in improving your existing homes the green building community commends you. Imagine what the impact would be if every home on every street was to make just a 10 percent contribution toward a more efficient tomorrow.

The effort to reduce waste and to conserve energy will find its greatest support in those who choose to improve their homes. Just as important is an informed and well-trained building industry. Certified contractors can provide reliable, professional, and affordable "green" remodeling solutions that can qualify for available tax credits at 30 percent of the cost, up to $1500, in 2009 and 2010 for:

Energy efficient windows and doors could save homeowners up to 39 percent in annual utility bills
EnergyStar metal and asphalt roofing can keep an attic cooler in the summer thus reducing peak cooling demand by 10-15 percent.
Insulating and sealing your home according to Green Building Program guidelines can make your home as much as 50 percent more efficient.
High efficiency HVAC systems, properly installed, can improve system efficiency by up to 30 percent.
Energy efficient water heaters can save an average household between $30 and $115 per year.
Pellet stoves in certain applications can supplement up to 90 percent of your annual heating.

Keep in mind that not all products and/or combinations of products will qualify for federal tax credits. Those who may mean well but who are unfamiliar with current building technologies may in fact do more harm than good. Consider consulting a Certified Green Professional.

Remember, if cost versus credit has you stumped, just "Ask a Builder."

Please use our contact form to send your questions, or write to "Ask a Builder" at P.O. box 294, Catlett, VA 20119.

Barkman is president of the Fauquier Chapter of The Northern Virginia Building Industry Association.

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