The Tax Man Cometh

As my accountant was so kind as to remind me this week, tax season is just around the corner and it's time to start collecting and organizing our paperwork for filing.

While filing taxes is certainly not one of my favourite tasks for running Green Horizon, I have to admit I enjoy seeing our clients get their state and federal credits for the home energy efficiency improvements they made last year.

One of the best Federal Tax Credit incentive programs is orchestrated through Energy Star, which credit up to $1500 per home for insulation, HVAC and water heater improvements that homeowners made in 2010. They also have a great program for crediting up to 30% of the cost for Geothermal Heat Pumps, which brings the cost of installation to a reasonable level for most homeowners. If you’re looking to file your 2010 tax credits for the Energy Star program, you can find their information here.

It’s not just the federal government who is pitching in to make North Carolina more energy efficient. The state also provides up to $1500 in tax credits for remedial insulation on older homes, and up to $1500 for HVAC improvements. You can find information on this program here.

It often surprises our clients when we tell them how much money they can get back from the government for simple home improvements (or “getting green for going green” as we like to say). Since there are a wide variety of incentive programs, and the credit amounts change from year to year, you’re best off working with an experienced contractor who can give you estimates on incentives and rebates when performing a home energy audit.

The tax man cometh, but this year he’s bringing good news for energy efficient homeowners.