Real estate investment can cost a modest fortune for many people, and because of this, you understandably want to save money in every way possible. The U.S. government has created numerous tax breaks and other financial benefits for those who own green homes or who make green improvements to their homes within a specified tax year. Such benefits can help you to save a sizable chunk of change within the next year. If you are looking for ways to save on your home ownership expenses, consider these points.
Green Energy Generation
There are several ways to produce green energy in your own home. This ranges from solar and wind energy to the use of geothermal pumps and more. Many home energy production methods produce enough energy to entirely offset the home's energy needs on a regular basis. Generally, the IRS allows you to deduct at least a portion of the purchase of the equipment and the installation cost for many types of green energy systems. This can drastically offset the cost to get the system up and running, and you can then enjoy ongoing energy savings throughout your time in the house.
HVAC Systems, Boilers and Furnaces
Climate control is a serious matter for homeowners, and you understandably need to invest in new, energy-efficient equipment to keep your home’s indoor climate as comfortable as possible regardless of the weather conditions outside. If you invest in a new HVAC system, boiler or furnace that is sufficiently energy efficient to meet IRS standards, you may qualify for a deduction or tax credit. Typically, the credit or deduction applies to specific models and is based on the equipment and installation costs. Some equipment may also qualify for local grants for additional savings.
Sealing the Home
Everything from new insulation to new doors and windows are responsible for sealing the home. Such features can prevent the transfer of heat between the indoor and outdoor environments, and this can drastically reduce energy consumption related to climate control activities. Replacing insulation, doors, and windows with newer, energy-efficient models may qualify the home for a tax deduction or tax credit. The cost of insulation and materials may both be used to determine the amount of the credit or deduction.
Living green is a great way to decrease your impact on the environment and to save money on energy costs in the process. Through these green home improvements, you may also be able to enjoy tax credits and deductions for additional savings. If you’re unsure what benefits you can get, realtors like those at Mark Fox Company can help you find out.