With the focus now on “green” technology, home energy conservation measures have become an issue. Energy-efficient heating and cooling systems, insulation and even forward-looking technology infrastructure are now becoming a part of everybody’s lifestyle and house maintenance lists.
Is a new tax credit in the works?
There’s a new bill for job initiatives being worked out by the Democrats. Part of it has about $11 billion earmarked for home energy efficiency.
The idea behind it is to have the construction industry working on more homes, putting in more insulation, caulking windows and doors, upgrading heating and cooling systems and installing energy efficient appliances. Aside from lowering home energy consumption, contractors will benefit from the work.
The key to the whole action will be a tax credit for homeowners pegged somewhere around $12,000 or half the cost of all the improvements, whichever is lower in value. If the homeowner spends the $24,000 maximum for home improvements and saves $100 a month on utilities, he or she ends up paying back the remaining balance (after the tax credit) in ten years. For cheaper solutions, the price tag may be about $7,000, with a payback in around five years.
But does it add value?
One of the more pressing concerns is that appraisers rarely value houses according to their energy efficiency. However, many people argue that as the real estate sector learns more about home energy conservation, the better one’s home will be valued if it is efficient.
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