Energy Efficient Home Review

One of the largest concerns on the global stage right now is naturally the economy.  Governments are under high pressure to fix the crises that are wrecking economies and destroying jobs.  After economic concerns, one the second most important issues, as evidenced by attention in the press and recent international summits, is the environment. Global warming and alternative energy solutions are a hot topic and are gathering steam. 

In light of the two seemingly immediate problems, politicians and policy makers all across the globe are trying to figure out ways to solve two problems with one solution.  In the United States, one solution is taking the form of ENERGY STAR Appliance Rebates.First of all, the federal government has offered certain tax credits for purchasing certain appliances.  All purchases, of course, must meet strict and often confusing IRS standards for claiming the credit on your tax return. You can get a tax credit for thirty percent of the cost of buying new, energy efficient, items for your existing home (not a new construction) on the following items: windows and doors, insulation, roofs, central air conditioners,  air source heat pumps, furnaces and boilers; gas, oil, propane, and electric heater pump water heaters; and biomass stoves. 

This is only for the tax years 2009 and 2010. For new homes, you can get a tax credit of thirty percent of the cost of geothermal heat pumps, solar panels, solar water heaters, and small wind energy systems.  The federal tax credit is different from the ENERGY STAR Appliance Rebates.  This credit means that the government subtracts the amount of your credit from your final tax bill.  It works in the same manner as the child tax credit, for example.On the other hand, the ENERGY STAR Appliance Rebates are offered by states, and not by the fedearl government. 

Don't try to claim these items on your tax return or try to get the rebates from the IRS.  In the appliance rebate program, which begins in 2010, you can get either an instant rebate or a mail-in rebate from your state for purchasing certain appliances.  The rules will vary by state, so be sure to get a list from your own particular state before you purchase anything.  A rebate is different from a tax credit in that it has nothing to do with your taxes.  You simply buy the product, and then are provided with a portion of your purchase price back from the state.  It doesn't go on a tax form and you don't have to wait to file your taxes to get the money.