Jan
21

Earn a Tax Credit for Green Remodeling

January 21, 2013

Owners of Chicago real estategreen home design who want to make their homes more energy-efficient in 2013 may want to take advantage of the non-business property energy tax credit. This credit will give homeowners up to $500 off their taxes for adding certain energy-efficient improvements to their residences.

The tax credit is retroactive, which means that it also applies to any energy-efficient renovations you made in 2012. Since this is a tax credit, not a deduction, that means that it is a direct deduction of your overall tax bill.

The credit works by giving you 10 percent of the cost of building materials for doors, exterior windows and insulation that meet Energy Star requirements. So, if you spend $5,000 in ‘green’ remodeling additions, you’ll get $500 back. The following items are also eligible for the 10 percent credit: heat pumps, central air conditions, furnaces and corn-fueled stoves. Yes, that’s right, corn-fueled stoves. These types of stoves are a great way to combat high utility prices, as they operate by burning shelled corn.

The only downside to the energy credit is that it is cumulative, meaning that if you’ve already received $500 in credits since 2006 (when the credit went into affect), you are not eligible to receive any additional money.

However, if you are new to green remodeling, be sure to apply for the credit when you file your 2012 taxes.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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