Home Equity Loan,Energy Efficien Home And Healthy Living

Using Energy Efficient Air Conditioners

When the government imposes tax on citizens, the reasons can be various. The primary objective is to collect revenue for developmental work. But in certain cases, taxes or tax benefits are introduced to regulate our behavior. The bill to provide tax credit for investing on energy efficient air conditioners is one such example.

In 2005, the Energy Policy Act had the provision of allowing homeowners to be entitled to claim tax credits if they used a selection of energy saving items. The items include energy saving windows, doors, roofing furnace and boiler, water heater and air conditioner. This new provision has been made keeping an eye on the present global condition of energy resources. With regular fossil fuels getting scarcer by the day, conserving energy has become something of utmost importance. It also encourages the use of alternate forms of energy.

Of course not all models qualify for this tax credit and only a select few make you eligible. And those specific models are obviously more expensive than the regular models. The tax credit you get for using these energy efficient air conditioners can be anything up to $300. Add to that the fact that you will save about $10 every month which will add up to $120 in a year. So, you would be able to save about $420 annually which is not a meager amount. Any homeowner would be made to think with such an amount involved.

It should be realized that not all air conditioners are eligible for this credit and there are a few standards that a unit has to fulfill for you to be qualified for the tax credit. Some of these standards include:

- The Energy Efficiency Ratio (EER) has to be anything equal or higher than 13 though for some states it is relaxed to 12.5

- The unit needs to be installed by a certified technician.

- The Seasonal Energy Efficiency Ratio (SEER) has to be 15.

While the SEER rating is to monitor the performance of the air conditioner over the year, the EER takes stock of the air conditioners capacity to remain energy efficient even on a very hot day. For central air conditioners there is a different set of norms and standards that have been decided and quantified by the Consortium of Energy Efficiency (CEE). The regulations vary slightly from state to state.

By: J. Uvios

Energy Efficient Windows and Doors

When it comes to wasting energy, it's a fact that most of the heat that disappears out of your home does so through the windows. Most cheap windows have poor seals that lead to drafts and heat loss. This leads to you turning up the heating to compensate which in turn leads to higher energy bills and, topically, you're not helping the environment either. Of course, fitting new energy-efficient windows is a great idea, but it's going to be pretty expensive, right? Well, not necessarily. There are government tax breaks to consider and the ultimate saving in your heating bills.

It's certainly true that the US Government wants to encourage you to fit energy-efficient windows by giving you a 10% tax break for doing so up to a maximum of $500 per year. This specific tax credit is called the Existing Home Tax Credit for Fenestration and covers windows installed between 31st December 2005 and 1st January 2008. So there's still time for you to benefit.

There's an organization that has come up with a rating system to work out the energy efficiency of windows. It is the National Fenestration Rating Council or NFRC. Its' rating systems are the U-Factor which determines how good your windows are at retaining the heat in your home (the lower this rating, the better) and the Solar Heat Gain Coefficient which measures how the windows help to keep the house cool (again, the lower the rating the better). If you want to qualify for the Federal Government tax credit you need to install products that have been rated by this organization. You'll need to submit a copy of your receipt as proof of purchase along with the product's NFRC sticker.

Here are some guidelines as to which energy-efficient windows and doors you should consider purchasing.

First, most insulating windows are made with two, or sometimes three, panes of glass. The manufacturer often fills the space between the panes with an insulating inert gas such as argon or krypton.

Next, window manufacturers can achieve lower U-Ratings by glazing the glass to various degrees with a special film or a reflective metallic coating. Some glazing even reduces transmission of damaging ultra-violet rays. In addition to insulating your house, this kind of glazing can protect your furniture and drapes from deteriorating due to UV exposure. If installing a West window, try to get glass with the lowest Solar Heat Gain Coefficient possible rooms with West exposure are notorious for overheating in the afternoon, and this type of window will help.

Another very important consideration is the window seal. It's imperative that any window you are contemplating buying has a tight seal. You can check this by noting the resistence felt when opening and closing the window in the showroom. The higher the resistence, the better the seal.

When you factor in the Government tax break and assume a minimum saving of ten per cent on your current heating bills, can you really afford not to replace your old, non-energy-efficient windows?

By: Graham Tasker

Home Energy Efficiency Improvement Tax Credits

Residents of the United States have one big advantage that they can reduce their taxes by making their homes as energy efficient as possible. There are certain types of home improvements which make the home owners eligible for tax credits like installing central air conditioning and heating, geothermal heat pumps, hot water boilers and advanced main air circulating fans.

The cost of the installation of the equipment and its purchase price are both included while ascertaining the price of an asset in the books of account. Homeowners can get a tax credit of up to 10% of the purchase price of the qualified energy efficient unit. If you have any doubts about the procedure of claiming tax credits you can always consult your financial advisor about any doubts that you may have.

Installation of photovoltaic systems can be expensive and the returns will be evident in the long run. On the other hand a solar hot-water system can pay for itself quickly and as energy prices rise, continue to save a homeowner increasing amounts of money. Solar hot water systems rely on a relatively simple and cheap technology to circulate water through panels that face the sun thereby supplementing and even replacing conventional water heating systems.

These home energy efficiency tax credits give relief to the users against the rising prices of energy. The idea behind granting these energy efficient tax credits is to give a sort of cash back to the customers whenever they purchase certain energy saving products. The most generous credits are available for those who add solar water, heat or power to their home. Solar equipments like solar water heaters are reasonably priced, easier to install and are a much better bet than conventional solar heaters.

By: Roselynn Jeff

Feeling Taxed? Give Yourself More Credit

Tax credits are available to homeowners who purchase high-efficiency heating and cooling equipment this year. The Energy Policy Act contains tax incentives that allow consumers to reduce their tax bills on a dollar-for-dollar basis up to the amount allowed under the law. The home energy efficiency tax credit is in effect for consumers who purchased qualifying equipment and had it installed in 2006 or 2007.

The Energy Policy Act offers homeowners as much as $300 in tax credits with the purchase of qualified high-efficiency heating, cooling and water-heating equipment. The legislation defines the type of equipment and the amount of the credit in this way:

• High-efficiency gas, oil and propane furnaces and boilers: $150

• High-efficiency central air- conditioning units, including air-source and ground-source heat pumps: $300

• High-efficiency fans for heating and cooling systems: $50

• High-efficiency water heaters, including heat pump water heaters: $300

Manufacturers and retailers should be able to tell homeowners if a product qualifies for a tax credit. Qualifying efficiencies identified in the bill include:

• Furnaces and boilers: Annual Fuel Utilization Efficiency (AFUE) of 95 or higher

• Central air-conditioning units: Seasonal Energy Efficiency Ratio (SEER) of 15 and an Energy Efficiency Ratio (EER) of 12.5

• Air-source heat pumps: Heating Seasonal Performance Factor (HSPF) of 9 or greater, SEER of 15 or higher and EER of 13 or higher

In addition to providing tax savings, these high-efficiency products will make it easier for homeowners to reduce energy consumption and lower their energy bills. To qualify for the tax credits, homeowners need to verify the efficiency of the equipment and the date it was placed into service.

By: Stacey Moore

Greener in More Ways Than One

It's certainly no secret: the cost of renewable energy production and its implementation can be extremely high. This is the very reason why tax credits are often used to enable renewable energy sources to compete with fossil fuels.

With rising oil and natural gas prices, the war in Iraq and environmental problems centering on global warming and air pollution, our nation is concerned about their energy security and environmental issues. The United States is recognizing the need and power of renewable energy and is supporting its development through federal income tax credits and incentives.

President George Bush signed the Energy Policy Act of 2005 into law on August 8, 2005. It took over four years for Congress to pass after reviewing several different versions. It extended tax credits for wind and biomass energies for two more years and included additional tax credits for solar, geothermal and ocean energy.

Solar tax credits apply to residential and business users. This tax credit would pertain to eligible equipment installed between 1/1/06 and 12/31/08. The equipment installed would include those solar systems that generate electricity, heat and cool or provide hot water to structures. It must also be operational in the first year the credit is taken and the taxpayer must be the original user. The credit is 30% with a $2,000 cap for each unit for residential taxpayers and it is 30% with a no business cap specified for corporate users. After 12/31/08 the corporate tax credit will return to 10%.

The geothermal corporate credit remains at 10% with no maximum stated. This credit does not apply to geothermal heat pumps and is limited to geothermal energy equipment that produces, uses or distributes energy derived from geothermal deposits. A personal tax credit of 10% with a $300 maximum can be taken for geothermal heat pumps.

These credits will be applied to any amount that remains after any other state or utility incentives have been taken. There are numerous states that do offer incentives also. Some new state incentives include a California state rebate program for photovoltaics, an Illinois state grant program for wind energy, a New Jersey state rebate program for geothermal heat pumps and a Pennsylvania property tax assessment for wind energy. These are just a few of the many state incentives that exist.

The United States government and the individual states are promoting renewable energy sources as an energy source to be encouraged. With all the incentives available, this may be one of the best times to make your air cleaner with a commitment toward this energy. With everyone's support we can recharge renewable energy's development.

By: M. Hick

Warming Up to the Idea of Solar Energy

There's good news for those who claim there's nothing new under the sun when it comes to saving on energy bills. Experts say new benefits and current conditions are making solar energy systems a practical reality for a growing number of homeowners.

With rising energy prices and concerns for the environment and about national security, homeowners are looking at solar energy options. A new federal tax credit, plus some state and local incentives, encourages adopting solar systems. The government offers a tax credit for 30 percent of the cost of a solar electric or solar water heating system. There is no cap for business owners; homeowners receive a maximum $2,000 credit for each system installed.

These credits make solar energy systems a feasible solution for hot water heating and electricity production for many building owners. Many homeowners already benefit from solar heating for their pools and spas without government incentives.

"As awareness grows, along with summer air-conditioning bills, we expect thousands more to consider their solar options," says Brad Collins, executive director of the American Solar Energy Society, based in Boulder, Colorado. "With continued rising energy costs, consumer interest in clean, renewable energy from secure U.S. energy sources, and federal tax incentives, we believe more homeowners and business owners will look for sustainable alternatives," he adds.

In most states, another advantage of solar electric systems (also called photovoltaic or PV) is the option to send excess energy back to your local utility grid. For example, if you are a residential customer, your system may generate more electricity than you need during the day when your family is away at work and at school. Net metering allows you to send this excess electricity to the grid, spinning your meter backwards, and reducing or offsetting the electricity you use at other times.

Today, solar energy equipment is high quality and reliable; it is backed by warranties from large, reputable firms and installed by experienced contractors. There are also many resources to learn more about solar energy.

By: Whitney Taylor

Save The Planet And Your Wallet

With energy prices on the rise, not only are people paying more at the pump, but they’re also paying more in their utility bills. This may cause you to be looking at energy efficiency in a whole new light. When you are purchasing home appliances, it is becoming more and more important to consider not only the price tag, but also the impact on your energy bill. So while some energy efficient appliances may cost a bit more at the store, the savings you get at home can outweigh the purchase price difference pretty quickly. Another bonus is that energy efficient appliances cause less stress to the planet, saving the environment.

Figuring out which appliances are best for you though, can be tricky. Different appliances and other home products like windows and insulation all have their own terms for what makes them energy efficient and they can be tough to compare. Looking for the Energy Star can be a good place to start, but before you do, it is helpful to know what it is and what it means.

The Energy Star is a US government program, started in 1992, that is a joint project of the Department of Energy (DoE) and the Environmental Protection Agency (EPA). The list of consumer goods that can qualify for an energy star rating has expanded steadily ever since. According to their website, products that have the Energy Star label have met strict standards set by the DoE and EPA for energy efficiency and low emissions. While appliances are not on the list, some Energy Star labeled products give tax credits to purchasers, and manufacturers of Energy Star appliances are eligible for business tax credits, which can mean savings passed along to consumers. Switching to Energy Star rated appliances can save an average of $80 a year on home energy bills.

Looking for the Energy Star when purchasing appliances is a good place to start, but keep in mind that not all appliances are eligible for the Energy Star. These include clothes dryers, ovens, and ranges. The DoE does have guidelines for purchasing energy efficient appliances in these categories though, and you can find links to them on their website. You can find the Energy Star on washing machines, dishwashers, refrigerators, and freezers, as well as other products for your home, like computers, phones, and lightbulbs.

Home Equity Loan Tips By: Cathy Peterson

Save Energy And Money On Taxes At The Same Time

In an effort to help promote alternative energy and energy conservation, the federal government is offering some tax credits to people who buy certain products like insulated windows, energy-efficient heat pumps and hybrid cars.

In August of 2005 the federal government passed the Energy Policy Act, and the resulting tax credits went into effect January 1 of 2006. Not only are energy-efficient products rewarded, but certain building techniques and materials are too.

So you save money on energy bills and pay less to Uncle Sam too. Sounds like a win-win.

"By reducing overall energy demand one family or business at a time," said U.S. Energy Secretary Samuel Bodman, "we are also increasing America's energy security." The program has the additional bonus of being environmentally conscious.

So how exactly does the program work? It provides tax credits for your federal return. Say you bought a new hybrid car or had your windows replaced with insulated ones. When April 15 rolls around, you note the purchase on your taxes, take the credit and it reduces the amount of tax you pay.

Remember that tax credits are different from tax deductions. A tax deduction is subtracted from your income before your tax is calculated. A tax credit is whacked off the tax you have been calculated to pay.

Credits usually account for better savings than deductions. Tax credits allow you to pay less taxes than the person with the same amount of taxable income who did not buy the car.

Tax credits are also available for energy-efficient home improvements like installing insulation, certain types of windows and roofing, and solar energy equipment. Needless to say, since it's a government program they're lots of rules and regulations.

Currently, these incentives are only available through the years 2006 and 2007 unless Congress extends them. Write to your Congressman today and tell him or her to vote to extend the act and then start taking advantage of it!

By: Dave Larsen

How Can I Qualify For A Mortgage Tax Deduction?

When buying a home there are many tax benefits you can take advantage of, including a mortgage tax deduction. Besides a real estate deduction, a mortgage tax deduction can be a great benefit. The only main qualifier for the tax deduction is that the amount, including for the primary and any second residence is less than $1.1 million.

Something that needs to be considered when trying to qualify for a mortgage tax deduction is that any home loans before October 14, 1987 are exempt from the previously mentioned limit. Loans that were taken out before this date can qualify under the tax reduction no matter what the size of the loan. Also if the loan was taken out before this date it can qualify for the deduction no matter what the use of the loan was for.

When it comes to the mortgage tax deduction there are some advantages in terms of the total acquisition indebtedness as well. First of all let's explain what the total acquisition indebtedness is. It is the money that you borrow to buy, build or improve on your home. Basically the same rule applies to qualify in this matter. Any one that was taken out after October 14, 1987 can only be allowed up to $1.0 million, where those who took one out before have no limit.

An interesting fact in regards to home loans and what could effect your qualifying of the mortgage tax rebate is that you can borrow up to $100,000 of the equity of your house and use it any way you'd like. In this instance, if you bought before 1987 you will not get a better in deal in this matter. Since if you did buy before 1987 if you borrow on the equity you can only use the money for home improvements.

One new thing that has happened in the instance of mortgages and tax deductions is that is no longer allowed to borrow with no limit. This means you can no longer borrow on your equity with not limit and benefit by using it for whatever you want. This also excludes you from making unlimited deductions on any equity you may have borrowed upon.

Another new thing that perhaps is a good thing is in regards to being able to draw on your equity like a credit card. There is a limit on it now but they can borrow when they need to, without all the hassle of taking out specific loans and the ensuing paperwork. This type of loan can qualify in terms of a mortgage tax deduction.

Being able now to fully understand what types of loans and mortgages that can qualify you for certain deductions can help you best take advantage of any benefits related to tax breaks. Having the option of a tax rebate can greatly increase your chances of saving money.

Home Equity Loan Tips

Understanding the New Energy Tax Credits for Homeowners

Global warming, dependence on foreign oil, high energy prices--yikes--one can't help but look for ways to conserve energy.

Fortunately, the U.S. Congress thinks the same way. New tax laws provide three, sweet tax credits for taxpayers who make their principal residences more energy efficient in 2006 or 2007.

100% Energy Credit on Heating & Cooling Appliances

Homeowners can use 100% of the cost of energy efficient heating and cooling appliances such as heat pumps, water heaters, air conditioners, furnaces, and fans as a tax credit.

A little wrinkle complicates the 100% credit however: You can't claim more than a $300 100%-credit for heat pumps, water heaters, air conditioners. You can't claim more than a $150 100%-credit for furnaces. And you can't claim more than a $50 100%-credit for fans.

10% Energy Credit on Energy-efficient Building Components

Homeowners also get a 10%-credit on energy-saving upgrades such as for insulation, metal roofs engineered to deflect heat, doors, and exterior windows and skylights. (But note the maximum tax credit available for windows is $200.)

Note, though, that taxpayers can't claim more than $500 in 100%- and 10%-credits.

If you do a major home renovation project, obviously, you might easily be limited by the $500 ceiling.

30% Solar and Fuel-cell Equipment Credit

Homeowners have one other energy tax credit to consider--a 30% credit on solar energy and fuel-cell expenditures.

You can claim a tax credit equal to 30% of the price of solar electrical generators up to a maximum credit of $2,000. And you can claim a tax credit equal to 30% of the price of solar water heaters up to a maximum credit of $2,000.

You can also claim a tax credit equal to 30% of the price of fuel-cell power plants up to a maximum credit of $500. (A fuel cell converts fuel to electricity.)

Home Equity Loan Tips

Get up to $500 in Tax Credits for Energy-saving Home Improvements

By now you’ve felt the impact of rising energy costs. With soaring energy prices, you can’t help but wonder how much of that high-priced heat is escaping during the cold, winter months through your non-thermal windows or drafty front door. And, during the summer, you get the feeling your air conditioner is pumping more dollar signs than cool air.

Under the recently revised Energy Savings Tax Act of 2005, tax credits are available for certain home improvements made in both 2006 and 2007, including insulation materials, exterior windows, skylights, exterior doors, qualified metal roofs, air-circulating fans, designated furnaces or water heaters, as well as certain heat pumps and air conditioners.

It is important for the homeowner to verify if a purchase meets the energy efficient criteria established by the IRS. Each manufacturer has a certification statement included in the packaging, or a certificate that can be downloaded from the company’s website. The certification will prove that the material you have purchased qualifies for the credit. Taxpayers should keep the certification document with his or her tax records. The certification should not be mailed to the IRS with your tax return when you claim the credit.

Taking advantage of the Tax Credit for Energy Efficient Improvements to Existing Homes will not only cut your tax bill, but also provide added energy savings. This credit has a lifetime ceiling of $500 and may not be taken against the Alternative Minimum Tax (AMT). A credit is often preferable to a deduction. For example, a $1.00 credit reduces your tax bill by $1.00, while a $1.00 deduction will only reduce your tax bill by .15 to .35 cents.

There are two categories of improvements that qualify for this credit. A Category One expenditure is an improvement to the “building envelope.” The IRS defines a “building envelope” as (1.) insulation materials or similar energy saving system, (2.) exterior windows, including skylights, (3.) exterior doors, and (4.) a metal roof with appropriately colored coatings that are designed to reduce heat gain. Taxpayers are eligible to receive a credit of 10 percent of the cost of these items. (The IRS has limited the maximum credit for windows to $200.)

Taxpayers are eligible to receive a dollar-for-dollar tax credit for Category Two expenditures. This category, however, has three specific caps. The IRS allows a $50 maximum for each advanced main air circulating fan installed in a furnace; a $150 cap for each qualified natural gas, propane, or oil furnace or hot water heater; and a $300 maximum for each qualified energy efficient item such as a heat pump.

The following year, the Parkers earned additional credit with their Category Two expenditure—a $350 heat pump. Normally, the Parkers would be eligible for a $300 credit for their Category Two purchase; however, since taxpayers are only permitted a $500 maximum credit, they are only able to use $170 towards the credit.

Another credit of interest to homeowners is the Tax Credit for Residential Energy Efficient Property—Solar Fuel Cell Equipment. This section of the Act provides credit to those who add solar panels, solar water heating equipment, or a fuel cell power plant to their home within the United States. Unlike the Tax Credit for Energy Efficient Improvements to Existing Homes, the Tax Credit for Residential Energy Efficient Property—Solar Fuel Cell Equipment states improvements do not have to be to your main or primary home.

The IRS has determined the credit for each of these improvements is 30 percent of the qualified investment, up to a maximum of $2,000. Taxpayers may take a separate $2,000 credit for each type of system; however, each credit may only be taken once. Equipment used to heat a swimming pool or hot tub does not qualify.

Home Equity Loan Tips

Federal Tax Deductions for Home Energy Improvement

On January first of this year, the Energy Tax Incentives Act of 2005 took effect. If you're in the market for new energy efficiency home improvements such as windows, insulation, doors, roofs, or heating and cooling equipment for your home and plan to spend the money in 2006 or 2007 you may qualify for federal tax credits.

In general, the tax cuts offer a 10 percent credit for money spent on an existing home for insulation systems that reduce heat loss; exterior energy-efficient windows, including skylights; exterior doors and metal roofs that meet applicable Energy Star requirements. You need to read the rules carefully, however, or the IRS will be kicking back your 1040 with some unpleasant surprises. For the standard stuff, residents can get a one-time energy tax credit of up to $500 for the purchase of qualifying energy-efficient home improvements. That credit is limited to 10% of any particular item, and does not include installation costs.

The particulars of the energy efficiency home improvements that fall under this legislation include exterior windows: 10 percent of the total cost, up to $200. Insulation, exterior doors, or pigmented metal roofs: will get you a credit of up to $500. This category of energy efficiency home improvement includes seals to limit air infiltration, such as caulk, and storm doors.

The energy tax credit applies to a central air conditioner, heat pump or water heater: up to $300 toward the full purchase price, including installation. For a furnace or boiler the credit is up to $150 toward the full purchase price, and/or $50 for an efficient air-circulating fan in a furnace, including installation cost.

This is a one time deal, available in 2006 and 2007 only. If you end up taking a $200 energy credit for windows in 2006, you're not going to qualify for another tax credit in 2007 if you spend more money on more windows next year. And remember, this is a 10% energy tax credit. Suppose you spend $2,000 on new windows. $1,200 of that is labor, so the credit doesn't apply there. The hardware cost you $800, so you get a 10% tax credit on the new glass. That's eighty bucks.

There's an overall lifetime limit of $500 in energy tax credits for smaller energy efficiency home improvements such as insulation, doors and windows. So you'd have to spend $5,000 on the materials alone in order to realize that ten percent, $500 maximum tax credit Energy efficiency home improvements also apply only to the taxpayer's principal residence. The credit would not cover energy-efficient windows or insulation bought for a vacation home or cottage.

There are additional qualifications: homeowners should understand that energy tax credits are available for qualified solar water heating and photovoltaic systems. The tax credit is for 30 percent of the cost of the system, up to $2,000. This credit is not limited to the $500 home improvement cap. The legislation is very specific on what is allowed and to what amount. Labor is allowed in some instances, not in others. It's important to do your homework on this one, and not depend on what a contractor tells you.

Home Equity Loan Tips By: G. Mundy

Going Green With Low Home Mortgage Rates

While the most obvious way to save money on your home is by securing a low mortgage rate, savvy homeowners can also reap financial benefits from the latest energy-efficient products and environmentally-friendly technology. Whether you install solar panels, a "green" heating and cooling system, or explore new uses for old materials, it pays to supplement low home mortgage rates with money-saving ideas.

Energy Audit

You can hire a professional to evaluate your home's energy efficiency, or perform your own inspection. The areas most likely to give you trouble are inadequate water heater and home insulation, and the leaks around windows and doors that reduce the efficiency of your heating and cooling systems, depending on the season. Check the U.S. Department of Energy's website for more recommendations.

Big Savings at Tax Time

The Energy Policy Act of 2005 (EPACT) offers consumers and businesses the opportunity to earn federal tax credits for buying energy-efficient products such as hybrid cars and home appliances. Your potential savings are impressive, particularly coupled with any additional tax incentives your state may offer for choosing energy-efficient products. To learn more about state tax rebates, check with your state government office.

Products that qualify for federal tax credits under the EPACT include most solar-powered water heaters and energy-efficient features such as roofs, insulation, and heating/cooling systems. If the cost of updating your home is intimidating, you might take advantage of today's low home mortgage rates and apply for a home equity or line of credit loan (HELOC). The interest paid on these types of loans may be tax-deductible and provide another financial break!

Shopping Smarter

Selecting "green" appliances is easier, thanks to the Energy Star system, which is designed to help consumers identify energy-efficient models. Other innovative choices include money-saving tankless water heaters and geothermal heat pumps, which use an underground pump to cool the house in summer and provide heating in winter.

What about new home construction? According to the U.S. Department of Energy and the Environmental Protection Agency, new homes that qualify for the Energy Star rating can save their owners hundreds of dollars in utility bills for services. This could translate to thousands of dollars back in your wallet, over the time you live in that energy-efficient home.

Whether you're building a new home or upgrading an existing property, taking time to research "green" options makes sense. Rising oil prices and fluctuating home mortgage rates can mean higher prices at the pump and tighter monthly cash-flow. Energy-efficient products and technology go a long way to helping you manage your expenses and protecting our environment from potential harm.

Home Equity Loan Tips By: G. Mundy

Home Improvement Tax Deduction

A home improvement deduction may fall under any of several different topics, so it is important to explore the situations that are right for you. For example, if a mortgage has been refinanced to pay for a project, the owner of the home may qualify for a legitimate deduction. Likewise, deductions may be claimed if the home is being redesigned to make it handicapped accessible.

A home tax deduction for medical or handicapped purposes may create a substantial tax savings, but only a qualified professional can best counsel you regarding these situations. In addition, it may also be possible to claim a deduction if you are building or improving a home office inside, or attached to the main residence.

Victims of Hurricane Katrina may qualify for a special tax deduction but should consult the IRS regarding the Katrina Emergency Tax Relief Act. In brief, it increases the permitted qualified home improvement loans. Again, a tax specialist can help determine if these victims can claim a special home improvement tax deduction based on their individual situations.

Publications

There are a wide range of publications from the IRS that should be consulted, in whole or in part, before planning to claim a deduction. These include: Publication 936, Home Mortgage Interest Deductions; Publication 502, Medical and Dental Expenses, which will discuss accessibility-related situations of a home improvement tax deduction; Publication 530, Tax Information for First-Time Homeowners; and Publication 554, Older Americans' Tax Guide. All of these may address a deduction based on individual circumstances and your family financial consultant or accountant can help determine the rest.

It is possible that a deduction may fall within several areas on the same form, whether some of it is written off under a refinanced mortgage, handicapped accessibility, or flood damage. It is better not to figure these out yourself, unless you have advanced knowledge of the tax laws and/or are ready to be held personally accountable when a deduction is found to be inconsistent with current laws.

You may call the IRS with additional questions regarding a deduction at 1-800-829-1040 for live assistance, toll-free at 1-800-829-4933 for business assistance, and 1-800-829-4059 for TTD assistance.

Do not wait until the construction is over to determine whether you have a qualified home improvement tax deduction. Good record-keeping throughout the project will make it easier to decide whether your deduction is legitimate, or if additional information and/or authorization is required.

One Last Tip

To some people this might sound like a no-brainer but it's important and quite a few people think that it doesn't apply to them. If you're going to try and get a deduction for imporvements made on your home please be sure that it's valid. Don't try to get something out of the government by lying or stretching the truth about costs involved or anything else to do with the deduction. Sooner or later you'll be found out.

Home Equity Loan Tips

Windows and Killer Utility Bills

Does your utility bill leave you in tears? Does your family walk around wearing all their clothes so you can avoid cranking up the heater and wiping out your bank account? Those beautiful windows are killing you.

Hate Paying Taxes?

Do you hate paying taxes? Everyone does. At least you only have to do it once a year. If you don’t take steps to improve your energy use, however, you are paying the utility company an energy waster tax every month and every year. I bet you never thought of it that way before. Fortunately, you don’t need an accountant to eliminate this tax.

To terminate your energy waster tax, you need to understand the areas where you are probably wasting energy. Here is the biggest offender.

Windows are necessary items in a home. Can you imagine a home without them? Of course not. Still, that beautiful view to the world outside comes with a heavy price. Windows are the single biggest area where heating or cooling efforts are wasted. Because windows open and close, they almost always develop leaks where your hard earned money escapes in the form of heat transfer. If you do nothing else after reading this article, take a close look at your windows. Making them air tight could save you as much as forty percent on your utility bill.

Even if your windows are not leaking, you still have a problem. As people living in cold climates can attest, most installed window are horrific burdens on heating efforts. These year around windows tend to be thin and are not designed for specific conditions. Put in simple terms, heat moves through them like beads at Mardi Gras. If you don’t believe me, go stand next to one of your windows on a winter day. It gets a bit chilly, eh?

To overcome your inferior window problem, you have two options. The first is to install windows designed to hold in hot air during winter. This will save you a ton of money, but you have to change them twice a year, installation and removal. If your lazy like me, a second option is to go with Energy Star windows.

Energy Star is a government program designed to encourage manufacturers to build better stuff for your home. If a product has an energy star sticker, it means it is going to save you cash on your utility bill. Since windows are problematic, the government has focused on them and you can now buy Energy Star windows at all home improvement stores. Note that I didn’t name an improvement store, but am willing to amend this article for a significant sponsorship fee!

While I wait for Home Depot or Lowes to call, go take a look at your windows. If you concentrate really hard, you can see dollar bills floating through them.

By: William King

Finding Energy Tax Credits For Homeowners

Homeowners who purchase high-efficiency heating and cooling equipment may benefit from legislation recently signed into law.

Last August, President Bush signed the Energy Policy Act of 2005. The act includes the home- energy efficiency tax credit, which offers homeowners as much as $300 in tax credits with the purchase of qualified high-efficiency heating, cooling and water-heating equipment. The legislation defines the type of equipment and the amount of the credit in this way:

• High-efficiency gas, oil and propane furnaces and boilers: $150

• High-efficiency central air- conditioning units, including air-source and ground-source heat pumps: $300

• High-efficiency fans for heating and cooling systems: $50

• High-efficiency water heaters, including heat-pump water heaters: $300.

Manufacturers and retailers should be able to tell homeowners whether a specific product qualifies for a tax credit. Qualifying efficiencies identified in the bill include:

• Furnaces and boilers: Annual Fuel Use Efficiency (AFUE) of 95 or higher;

• Central air-conditioning units: Seasonal Energy Efficiency Ratio (SEER) of 15 and an Energy Efficiency Ratio (EER) of 12.5;

• Air-source heat pumps: Heating Seasonal Performance Factor (HSPF) of 9 or greater, SEER of 15 or higher and EER of 13 or higher.

In addition to providing tax savings, these high-efficiency products will make it easier for homeowners to reduce energy consumption and lower their energy bills. To qualify for the tax credits, homeowners will need to verify the efficiency of the equipment and the date when it was placed in service. The equipment must be installed between January 1, 2006 and December 31, 2007.

By: Rick Chapo

Come and get it…Your Federal Tax Credits

Money is like manure; it's not worth a thing unless it's spread around encouraging young things to grow. – Thornton Wilder
The lack of money is the root of all evil. – Mark Twain

Did you know that Congress passed a bill in 2005 that can provide you a tax credit (that’s a dollar for dollar reduction in your tax bill to Uncle Sam!) for items that you may need to purchase for your house or even a new car?

That’s right Congress passed the Energy Policy Act of 2005. This federal legislation can provide you with up to $500 in tax credits for improvements to your house. Over $3,000 in tax credits for buying a hybrid car, and if you’re a person who wants to help the environment and you install some solar electric panels on your roof or a solar water heater collector on your roof you can get up to another $2,000 for each!!

Wow, where was this bill when I had some home improvements performed on my house two years ago. And if you’re a business owner you can get tax credits too for your building, company vehicles, and The Energy Policy Act provides a variety of tax credits for businesses, homeowners, home builders, appliance manufacturers, and hybrid/fuel efficient automobiles. Some of these tax credits expire in December 2007 while others expire in later years. And even our Congress is looking a spreading these tax credits around to as late as 2015.

The maximum tax credit you can claim for your house is $500, with the exception of installing a solar electric system (call Solar PV – photovoltaic) or a solar water heating system. Both of these systems can net you another $2,000 each in tax credits.

You can also claim up to $3,400 in tax credits when buying a new hybrid vehicle. The tax credit is based upon the type of vehicle and how much does fuel savings does the hybrid achieve when compared to its non-hybrid cousin. The more efficient hybrids are going to qualify for the higher tax credits and reports from such distinguished periodicals such as Consumer Reports is saying a Hybrid car actually costs less than the non-hybrid version after five years this includes all of the associated maintenance costs and fuel costs over the life of the vehicle.

Gas station owners can add an Ethanol system at their station and receive thousands of dollars in tax credits. The IRS continues to interpret and release notices to the public describing their interpretation of the congressional bill.

Before buying any new product for your house checkout different websites to obtain updated information on the tax credits, what has changed, and what has recently been released through a Notice.

As Thornton Wilder said “it’s not worth a thing unless it’s spread around and encouraging young things to grow.” Congress has spread around tax credits and incentives for us to help this industry grow lets all do our part and remember there may be a tax credit available to you when you make an improvement to your house or buy a new car.

By: Whitney Taylor

Financial Incentives for Your Business to Use Solar Power

When it comes to running a business, much of the necessary focus is on the bottom line. Many businesses, however, fail to realize they can seriously cut energy costs by going solar.

Tax Incentives

Federal and State governments know the best way to initiate change is to provide an economic benefit. When it comes to energy, governments try to make the use of solar energy as economically attractive as possible to businesses. This is done through granting tax incentives in the form of tax credits and deductions. Depending upon which government agency is involved, federal or a particular state, corporations can get tax credits and deductions ranging from 10 to as high as 35 percent of the cost of purchasing and installing solar energy systems.

Net Metering

On top of the tax incentives given to businesses for going solar, a majority of states now offer incredible cost savings through net metering. Net metering refers to state laws that require utilities to purchase power generated from solar systems used by businesses at the same price the utilities would otherwise charge the business. If the business is producing energy in excess of what it is using, the energy is sent into the utility grid and the building power meter actually runs backwards. Since many businesses are closed two days a week, this effectively means the utility is buying the power on said days. Net metering is an incredibly effective means of slashing utility costs.

Solar Loans

Businesses can gain further benefits through going solar by taking advantage of government solar financing programs. These loan programs offer incredible terms in an effort to promote the use of renewable energy and make sense for both new construction and renovations. Typically created as state programs, these “solar loans” offer financing for the purchase and installation of the equipment. The loans typically have seven to 10 year terms, and are offered as no interest or extremely low interest financing. Combined with the economic benefits of net metering, such loans make the decision to go solar a slam dunk.

Each state tends to handle the promotion of alternative energy in different ways and with different benefits. When combined with federal programs, businesses can reap a financial benefit from using solar energy sources.

By: Jim Barton

Get A Tax Credit For Using Renewable Energy In Oregon

Oregon has always been known as an environmentally conscious state. To this end, you can even get a tax credit for using renewable energy.

Residents in Oregon can claim a Residential Energy Tax Credit if they use renewable energy systems. The tax credit can be claimed by both homeowners and renters, a scope not found in most states.

To qualify for the Residential Energy Tax Credit, a homeowner or renter must convert to a clean energy system in one of the following areas:

1. Appliances,
2. Heating systems,
3. Cooling systems,
4. Ventilation or Duct Stems,
5. Closed-loop geothermal system for space heating or water heating,
6. Solar thermal heating,
7. Solar electrical generation through solar panels,
8. Wind power production,
9. Use of fuel cells, and
10. Hybrid fuel vehicles.

The amount of the Renewable Energy Tax Credit depends on the particular area in which you pursue clean energy platforms. Highlighted amounts are:

1. Solar Systems – Nope, not the planetary system. Instead, you can claim up to $3 per peak watt for your system with a cap of $6,000. Please note, however, that you can only claim up to $1,500 a year, but can carry the credit forward to following years. For solar platforms used to heat structures and water, the tax credit is 60 cents per kilo-watt hour with a cap of $1,500. The same applies to wind systems, fuel cell platforms.

Unlike other states, Oregon will give you a tax break for heating your pool. Clean energy pool heating systems such as solar are eligible for a tax credit equal to 15 cents per kilo-watt hour of saved energy compared to a traditional heating system. There is a cap on the system, which is 50 percent of the total cost or $1,500. Still, this represents a major savings over programs offered in other states.

2. A closed loop geothermal system is one in which circulating fluid remains in the piping without exception. They are typically used to cool and heat homes. If you convert to such a system, you can claim a tax credit of $300 to $900 depending on the type of system.

3. Appliances are often the biggest energy wasters. If you purchase an appliance approved by the Oregon Department of Energy you can claim a tax credit equal to the amount indicated by the department or 25 percent of the net cost of it. Sorry, but you have to take the lesser amount.

4. Clean energy heat pump systems can garner you a tax credit of $300 to $500. Note, however, that you must have it installed by a licensed contractor.

5. Hybrid vehicles are all the rage these days. If you have one in Oregon, you can claim a tax credit of $750. This is on top of the tax credit you get from the federal government as of January 1, 2006.

Oregon has always been known as a green state. Financial incentives in the form of tax credits bear this out.

By: SolarMan

Getting A Tax Credit For Doing The Right Thing

(NAPS)—Making energy-efficient home improvements and purchasing fuel-efficient hybrid electric vehicles is no longer just an environmentally friendly move—making these purchases could save you money at tax time.

That’s because the Energy Policy Act of 2005 will offer consumers federal tax credits for making energy-efficient purchases.

Using energy-efficient appliances, installing better windows and insulation can provide many benefits. In addition to lower energy bills, individual energy-saving action can increase comfort in the home and reduce air pollution.

By driving or buying or leasing a new hybrid gas-electric automobile fuel efficient vehicle you can get an income tax credit of $250-$3,400 plus better mileage—meaning lower gasoline prices—and fewer emissions.

What Are Tax Credits?

One of the best benefits this year is the new tax credit offered by the Energy Policy Act. Qualifying products and vehicles can mean having to pay less at tax time.

Eligible homeowners don’t get an instant return on what they buy, like a rebate or a discount. Instead, they itemize the purchases on their federal income tax form and that affects the total amount of tax they’re supposed to pay. This tax credit increases a person’s rebate or lowers the amount he or she owes.

A tax credit is not like a tax deduction. It’s generally more valuable since it reduces tax dollar for dollar, while a deduction only removes a percentage of the tax that is owed.

Home mortgages, charitable giving and home office expenses reduce taxable income only by a percentage of what’s taken in tax; a tax credit, on the other hand, reduces taxable income directly, not as a percentage.

Energy-Efficiency Improvement Tax Credit: The Breakdown

According to the Department of Energy, you can, for example, get a one-time tax credit of up to $500 total for installing efficient new windows, insulation, doors, roofs, and heating and cooling equipment in your home. Building materials must meet ENERGY STAT requirements and must be placed in service from January 1, 2006 to December 31,2007.

New Tax Credits for Solar Energy Technologies

There are also tax credits for solar energy technologies and for fuel cells. Some consumers may also be eligible for state rebates. For more information on exactly how you may be able to take advantage of this tax credit, consult with a tax professional or contact the Internal Revenue Service, www.irs.gov. The Department of Energy cannot offer individual advice on taxes.

By: Rick Chappo