The 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.

Did you know that the government could pay you simply for investing in your home?

Federal Tax Incentives For Home Improvements

Add a solar water heating or photovoltaic system into your home in the coming year and the federal government could send you as much as $2,000 for your investment as part of a federal tax credit program! To learn about the requirements and download IRS forms for your refund, visit the Federal Government’s Energy Star website.

You can also find information on different tax incentives on the state level by visiting the Database of State Incentives for Renewable Energy website. By searching your state’s database you may find even more tax credits for home improvements. Projects with refunds available often include upgrading to more energy efficient appliances or home windows.

With the government giving you money to improve your home, there’s no excuse to not look into the options available. Everyone love free money, right? I know I do!