Let’s face it: money is tight today. If you’re looking to get the most bang for your home improvement dollar, think about making improvements that make your home more livable today and valuable if you plan to put it on the market when times improve.

If you have the budget or access to a reasonable loan, then a major project, such as window or siding replacement can bring lasting value. New fiber-cement or vinyl siding can bring as much as an 87 percent return. Replacing windows with energy efficient wood or vinyl sets can bring nearly an 80 percent return.

Major bathroom and kitchen remodeling efforts also can bring a strong return, but less so than siding and windows. Adding an outdoor wooden deck can boost home value by as much as $24,000 and bring in a sizable return on the cost of installing it.

Mid-scale Improvements that Work

Minor kitchen remodeling projects put an incremental burden on your budget, but still increase home value and utility. Perhaps you want to add kitchen counter laminate or fresh paint.

Minor kitchen remodels can net an 80 percent return on your investment—higher than a complete remodeling project can bring.  Or, consider remodeling an unfinished basement, a project that can bring more than 70 percent returns on your outlay.

Your region can also play a large part in determining ROI.  For example, minor kitchen remodeling projects brought great returns in the West, while the ROI winner in the South was fiber-cement siding. In the Midwest, homeowners fared best with minor kitchen and major bathroom remodeling projects.

Remember to get plenty of quotes from different contractors and see which ones offer the best discounts on materials.

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 would have a hard time objecting to becoming the owner of this bathroom:

Photo Credit: Sunset

Or this one:

Both are exquisite bathrooms, but the windows are maybe my favorite part.  I started thinking about this practically though, and who honestly has a private enough home that you could pull off those kinds of windows in the bathroom with out shocking the neighbors?  Especially if you live in an urban area, it would be quite a challenge. 

Unless you want to get a little bit creative:

While I’m not a huge fan of frosted glass, I think it can be excused in the bathroom.  Especially if you pair it with clear glass, you could get virtually the same effect while maintaining your privacy.  In my mind you can never have enough natural light in a space, so anything you can do to get it there is acceptable. 

You could also get a similar effect using some lattice.  Either transplant established plants onto your lattice piece, or grow some specifically for the job, and place them strategically outside your bathroom windows.  I like this approach especially because it has the potential to make your bathroom feel like a lush, leafy hideaway.

So, whats in a window? Maybe more than you think.  What sunny days do for your mood, windows can do for your house.  I’m a huge proponent of natural light.  Not only will it cut down on your electricity bill, it can lift your spirits as well.  Especially if you live in an area that can be sunlight challenged (my fellow Portlanders may be able to relate) and you’re looking for ways to feel better in your house during those long winter montsh (and who isn’t?) new windows may be just what you need. 

Are you after some more UV rays, but nervous about the privacy factor?  Not only can draperies be a fun and creative option, you can cut down on potential peepers entirely by going the skylight route, an especially appealing option for bathrooms.  Bathrooms are the places you need the most privacy so it makes sense that these tend to be spaces that end up windowless more often than others.  The skylight is a great example of a way you can get the best of both worlds for your bathroom design. 

Wake Things up With Windows

I also tend to think that windows belong everywhere, big ones.  This trend seems to be popping up more and more in eco-friendly buildings, and it’s a great way to brighten up your home and take advantage of the natural resources right in your own backyard:

Photo Credit: Neil Kelly

If you’re worried about how adding windows would fit into a more urban lifestyle, this is where looking into different options for window treatments will come in handy.  Drapes and shades offer an incredibly flexible way to chose how much light you allow in, and how much, or little, the neighbors will be able to check out your digs.