It’s time to revisit the American Recovery and Reinvestment Act of 2009 and its energy improvements section.  In sum, Section 1121 of the act was created to offer a $1,500 tax credit for materials applied towards an energy retrofit of windows, skylights, doors, insulation and roofing.

Homeowners can earn the credit up to a 30 percent ceiling on materials. However, if you’re working with heating and air conditioning, you could receive a credit up to 30 percent of the cost and installation for a solar- powered water heater or biomass stove.  Another provision of the legislation creates a no-repay $8,000 tax credit to a first-time homeowner.

Tax Rules and a Quick Warning
The provisions of the stimulus  tripled the size of credits for upgrading your home. But you must meet Federal requirements to successfully file for the credit or return. All new HVAC systems or new windows, skylights, doors, etc., have to be installed between  January 1, 2009, and December 31, 2010.

If you’re planning on taking the credit, you must buy products that meet Federal energy efficiency requirements. Even a product identified on its label as an Energy Star certified item may not meet the regulations. New compliance levels have been set based on National Fenestration Council (NFRC) ratings for  U-Factor and Solar Heat-Gain-Coefficient values.

There are varieties of insulation products that meet lifespan and warranty requirements that you can add to your materials checklist. And roofing materials that meet Energy Star requirements may also qualify.

Insist on Paper
For each purchase you want to apply to your tax return, you’ll need the receipt, the product tag verifying its energy-efficiency ratings (Manufacturer’s Certification Statement), and a separate form provided by the retailer indicating the sale of an qualifying item.

Don’t confuse your contractor with your tax attorney. Look carefully at advertising from contractors who claim that they’ll match your $1,500 tax credit.  That’s assuming that you can qualify for one.  Remember, only certain energy-efficient renovations qualify for tax credits and include labor costs. Review the list at the Energy Star website.

Also, don’t take a contractor’s word that the materials meet the provisions unless you see the actual manufacturer’s certification tag. Any contract or work-order you arrange with your installer should itemize materials costs in a separate breakout from labor. You’ll need to save all the documentation you can for your records.

It’s worth a note that the law also set aside $5 billion in funds for weatherization assistance to qualified low-income households.

I’m always looking for ways to save.

Whether it’s killing off vampire power with items like the Smart Strip power strip, or trying to use the least amount of paper products in my kitchen that I can get away with, I am a person who likes to save money and the environment.  It’s a powerful combo, and one that is catching on with more and more homeowners.

Lots of small household upgrades pack a double punch of money savings and eco savings. Your front door for instance. Did you know that replacing exterior doors can save you money? By upgrading your exterior doors to steel or fiberglass you will gain five times as much insulation as with an older, dated door. Better insulation means you don’t need as much energy to heat and cool your home. These doors generally also include built in weather stripping, another great way to trap in heat and stop drafts.

Last but not least, if you upgrade to an EnergyStar approved exterior door you can apply for a tax credit of 30% of the cost of the project for up to $1,500.

Looking for other ways to save? Here are some other tips: 

Green Building with Joel Fraley of The Neil Kelly Company
Energy Efficency: Put Your Refrigerator to the Test
Falling Rain = Falling Utility Bills: Rain Catchment Systems

Here’s some highlights of what I’ve been reading on the web this week:

Rejuvenation Contest for $1,000 Worth of Products:

Enter to win $1,000 worth of Rejuvenation products? Now that’s something I can get excited about. If you live in Portland and have been to their showroom you know what I’m talking about. If you’ve never seen their amazing hardware and lighting products, this is a good time to get familiar with them via their website.

To enter, you need to submit up to three photos of a your recently remodeled space (with or without Rejuvenation products). Projects will be posted on their website and users can vote on their favorite update. The homeowner with the most votes wins!

(Corona Tri from Rejuvenation)

If I got the$1,000 I’d have my eye on the Corona Tri , the Orbis ceiling light from their Satallite Mid-Century Modern series, and maybe some new switchplates.

Apartment Therapy Kitchen Cure:

I just signed up for the Apartment Therapy Kitchen Cure. Six weeks dedicated to working along with hundreds of other fellow readers to put new life into our kitchens.

The cure starts this Monday, and I’m excited to see what Sara Kate has planned since the cure is coinciding perfectly with my move into a new home and new kitchen.  With tips on everything from reorganizing your pantry, to working on knife cutting skills planned for the “syllabus”, the next six weeks should be fun. Sara Kate is also suggesting a dinner party as a “graduation” ceremony at the end. We’ll see if I actually get that organized…

Thinking your kitchen could use a cure or two, sign up for the Kitchen Cure by Monday to start with the rest of the class.

Home Depot Printable Tax Credit Eligible Product Lists: 

Everyone these days wants to know how they can benefit from the recent stimulus package and the slew of projects and tax credits that went into effect with it. Home Depot posted on their Twitter this week with links to printable lists of tax credit eligible products. If this doesn’t make it just plain simple for homeowners to update their home and get money back, I don’t know what does.

There was lots more great stuff on Twitter and around the web this week…but there’s just not enough hours in the day to list them all here. Hope enjoy this quick selection.

Have a great weekend everyone!