Have your 2010 tax documents arrived yet? If not, they soon will. Their arrival is often met with disdain by taxpayers, but it should also serve as a reminder to American homeowners to look into any new rules and regulations they can take advantage of that could save them tax dollars in the upcoming year. That’s especially true while the recession plods onward and President Obama continues to offer stimuli in an effort to jump start the economy.
Part of that economic stimulus plan can be financially rewarding for homeowners who know how to leverage it. That’s because it includes tax dollar incentives for homeowners who undertake energy-saving home repairs and retrofits. It’s always best to consult with a tax professional before undertaking such repairs, just to make sure they’ll be covered under the president’s plan, but in most cases, an energy-efficient roofing repair or replacement will fill the bill.
According to a recent Pacifica Tribune feature, undertaking “‘green’ projects for your house (like an energy-saving roof)… will generate a 30 percent tax credit from the government, enabling you to knock up to $1500 – and maybe a whole lot more – off your year-end tax bill. They’re (such projects) called Federal Energy Efficiency Tax Incentives.” And one of the ways in which the newspaper advocates taking advantage of these incentives is by installing “solar reflective metal or asphalt roofing.”
That’s right. Throughout the entire year of 2010, provided the total cost falls under the $5,000 threshold, a new energy-efficient roof can save you a significant sum when tax season rolls around next year.
Want to get even more tax-saving benefit out of the stimulus plan? Then consider taking “the plunge into self-generated green energy for your home. If you’ve always wanted to install solar panels on your roof,” the Pacifica Tribune points out, there’s not time like the present. That’s because the $5,000 upper limit is waived on such overhauls. The only caveat? “The (solar panel roofing) system must power your home itself,” and not just a part of it.
More information on what constitutes tax incentive-applicable energy star roofing can be found on the Environmental Protection Agency – U.S. Department of Energy Energy Star page. The site points out these additional, non-financial advantages of making the switch to green roofing:
- Because they reflect more of the sun’s rays, Energy Star qualified roof products “can lower roof surface temperature by up to 100°F, decreasing the amount of heat transferred into a building.”
- Energy Star qualified roof products can also lower air conditioning usage “and can reduce peak cooling demand by 10-15 percent.”
If a roof repair or replacement lies somewhere in your foreseeable future, you might want to start looking into your options right now. By choosing an energy-saving alternative when you redo your roof, you can take advantage of significant tax savings that may not be around forever. In so doing, you can substantially lower the overall cost of getting the job done. And you’ll be helping to preserve the environment in the process, too.