What the Stimulus Means for Homeowners (or soon to be homeowners)
Posted February 23rd, 2009 by PaigeThe stimulus bill has finally passed and with a trillions of dollars in the mix you’re probably wondering what parts will help you. Here’s a short review of how homeowners can benefit from the new bill.
We’ve been talking a lot about tax credits for homeowners wanting to make energy efficiency improvements to their home. It’s a sweet deal to have the government pay you to update your home, but the deal has just gotten a little bit sweeter.
Before, most improvements, such as new Energy Star windows installed in your home, were eligible for a tax credit of 10% of the project up to $500. With the new bill, these projects are now eligible for 30% of the project up to $1500. That’s triple what it was!
For most homeowners, $500 wouldn’t cover much of an installation, but $1500 can make a much larger dent in buying a new water heater, windows or maybe even solar panels. If you hadn’t considered any of these projects before, now might be the time to request free estimates on projects to see how much you could save with the larger tax credits.
For a full list of projects and their corresponding tax credits check the Energy Star website.
Are you considering buying your first home? Did you know there is a tax credit for first time homeowners? The new stimulus bill has increased the new homeowner tax credit from $7500 to $8000. I wouldn’t mind getting that extra $500 back from the government, and it’s especially nice for a young homeowner who might take that extra money and put it right back into their home for remodels and improvements.
For more on the final stimulus bill, check out this great breakdown from the Wall Street Journal.
Tags: energy efficency, ENERGY STAR, government stimulus package, tax incentives
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February 23rd, 2009 at 3:45 pm
Nice writing style. I look forward to reading more in the future.
February 24th, 2009 at 1:17 pm
interested in solar power
March 14th, 2009 at 12:41 am
[...] What the Stimulus Means for Homeowners (or soon to be homeowners) [...]
March 24th, 2009 at 11:57 am
Check out http://www.greenmech.org, We are a educational training to the trades on Green Mechanical Systems
March 25th, 2009 at 9:28 am
But what about the pay back? Yes you can get these credits but you MUST pay them back. What my accountant said was that the Gov. will deduct $500.00 a year from your taxes as a payback. If you get a refund at the end of the year the Gov. will deduct the $500.00 out of your refund each year until it is paid in full. If you owe taxes at the end of the year, you will owe an additional $500.00 as a payback until it is paid in full. Can any of us afford this right now???? It all sounds good but do your homework before you sign up for this money.
March 26th, 2009 at 3:40 pm
Just wanted to follow up on the last comment. The commenter is right that in all years from 2008 and back, the $7,500 tax credit did have to be paid back.
However, now, the new $8,000 credit does not need to be paid back. So, if you have bought, or are planning to buy your first home in 2009, you will be receiving that money with no strings attached to pay back.
May 22nd, 2009 at 12:42 pm
question, if your a first time home owner and been buying your home for 3 years do you quifily for the 8000 dollars
May 22nd, 2009 at 3:14 pm
Hi Todd,
Thanks for your questions. Without knowing more details about the purchase of your home - I’m not sure whether you qualify or not. You would have to have purchased the home within 2009, sounds like you might have purchased it a few years back, which means you may not qualify.
To be sure, I would check with an accountant - they will be able to give you the best answer.
Thanks!
May 23rd, 2009 at 6:40 am
I have purchased a home before but my husband and myself have purchased a home together. He has never purchased before, will we qualify for the tax credit?
May 23rd, 2009 at 6:53 am
i guess the tax credit wouldn,t do me any good i,m already retired and don,t have money to pay taxes on .i need roof so bad it leaks all over when it rains have no money to put on a new roof,i don,t recieve enough money.
May 27th, 2009 at 12:34 pm
Yes, he should qualify for the tax credit, as long as the home was purchased within the 2009 tax year. As I suggested to another reader, becuase each home buying situation is unique, check with a accoutant to make sure!
May 28th, 2009 at 9:31 am
My question will be that if you purchased a home before 2009 none of this stimulus plan will apply to any of us. Is this correct?
May 28th, 2009 at 4:27 pm
You are correct, the $8,000 new homeowner tax credit is only applicable to homes purchased in 2009.
However, if you plan on doing any home improvements on your home in 2009, you may be eligible for a different tax credit. Many projects, such as new windows, a new water heater, and new appliances can be reported on your tax return to a portion of the project costs back up to a certain amount of money. They upper limit for these tax credits was raised by the Stimulus Bill, so 2009 may be a good year to consider these improvements.
Here is a full list of the projects and tax credits for 2009.
We can also help you find a contractor for any home improvements you plan on making.
May 31st, 2009 at 7:25 am
I put 4 windows in this year at a cost of just over $3,000 and new gutters on both sides of the house for another cost of just over $3,000. Now, if I’m reading right I won’t get $6,000 back just $1,500 - which would still help. But, sounds like I have already shot the wad of pay back money. Somehow $1500 doesn’t sound like a lot anymore.