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4 home upgrades worth the tax break © Brian Hagiwara/Corbis

The Basics

4 home upgrades worth the tax break

Continued from page 1

Replacing windows and doors

Before, tax credits for windows and doors were capped at $200. Now you can get up to $1,500. But that's only if those doors and windows meet certain criteria.

Windows, doors and skylights need a label from the National Fenestration Rating Council that says their U-factor -- a measure of how well they'd keep heat from escaping -- is no more than 0.30. The label also needs to list a solar heat gain coefficient, or SHGC, which measures how much of the sun's heat penetrates into the home, of no more than 0.30.

Still, qualifying windows are expensive, with most ranging from $270 to $1,100, says Susan Roeder, a spokeswoman for Andersen Windows and Doors, a manufacturer based in Bayport, Minn. Doors can start around $840 and cost as much as $2,500.

Storm windows and storm doors can also qualify. The storm window's manufacturer certification statement lists the type of exterior windows, including single pane or clear glass, which it can be combined with to be eligible for the credit. Storm doors need to accompany a tax-credit-eligible wooden door without exceeding a combined U-factor of 0.30.

Installing air conditioners

Energy Star estimates the retail price and installation of a 5-ton central air conditioner at more than $1,700. That's hardly cheap, but these systems need to be replaced only once every 10 to 12 years, Schneider says.

To qualify, central air conditioners need a seasonal energy efficiency ratio, or SEER, which measures the efficiency of central air, of at least 16 and an energy efficiency rating, or EER, which tracks how it operates once the outdoor temperature reaches 95 degrees, of at least 13.

For a list of qualified air conditioners, click here.

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Putting on a new roof

Assuming your roof is around 15 years old, replacing it with a metal or asphalt roof that meets Energy Star requirements will help keep your home cool by reflecting the sun's heat, especially if you live in a warm location, Schneider says.

This is a pricey project, however, running around $200 to $300 per square, says John New, a salesman at American Building Components, a manufacturer of metal roofing in Nicholasville, Ky. For a 25-square roof -- a common roof size of 2,500 square feet -- it would cost $5,000 to $7,500.

But once you hit $5,000, you'd be eligible for the full $1,500 tax credit, says Schneider.

This article was reported by AnnaMaria Andriotis for SmartMoney.com.

Published May 13, 2009

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1 - 10 of 41
Wednesday, May 13, 2009 9:18:22 AM
What we REALLY need is for houses to be energy-rated when new AND on resale - the total cost (per annum) of heat and hydro divided by the number of square feet of living space.  Like mpg for cars. THIS HAS TO BE A GOVERNMENT INITIATIVE (take note Obama).  Only then will it make cents for people.  When you buy a house NO ONE thinks about energy cost and if they do, we don't want to pay extra for energy efficiency.  If it is in our face and we can easily compare houses - apples to apples - then SUDDENLY it will be important and significant for every purchaser.  Otherwise, out of sight, out of mind.
Wednesday, May 13, 2009 9:54:13 AM
Sad
Wednesday, May 13, 2009 9:54:36 AM
Sad
Wednesday, May 13, 2009 10:07:11 AM
You state in this article that some of these items are expensive.  However, most power companies also offer rebates which help off set the cost.  In my city when we had new blow in insulation done on our home it ran about $1,900.00 but my power company also rebated $463.00, plus I received a credit on my taxes.  So our total cost for this project was less than $1,300.00.  I am on a budget plan monthly for my energy bills and that payment went down $16.00 per month.  I know that the power company in our city also offers rebates on windows, air conditioning, furnaces, hot water tank, etc...  So most of the time it is worth the investment.
Wednesday, May 13, 2009 10:11:03 AM
For those of us who were "proactively green" (ie. upgraded our homes in 2008), we got screwed!  How about some retro-active tax credits?  Our upgrades are no less significant than ones done in 2007 and 2009.
Wednesday, May 13, 2009 10:27:25 AM
My uderstanding is only some items can get the credit on both the materials and installation and on others it only applies to the materials.  Roofs materials qualify but the labor would not.  Labor would also not apply to windows and doors.
Wednesday, May 13, 2009 10:29:49 AM
I'm wondering where the $1700 retail price and install of an EnergyStar certified AC unit came from. I've been in HVAC for 5 years and the prices of 16 SEER equipment would run a contractor well over that just for a coil, condensor and line set (nevermind any duct alterations, new furnace)   Sad
Wednesday, May 13, 2009 10:56:53 AM
seriously who quoted this guy $1700 for retail and installation of a 5 ton energy star unit. people should have to do some research first before they are quoting market prices(unrealistic ones) for a whole industry. there is no way ANYONE could buy AND install a 5 ton unit for $1700.
Wednesday, May 13, 2009 11:13:13 AM
Also the price for a new roof is misquoted as well.  I have an average size house and my roof was $9000 plus!
Wednesday, May 13, 2009 11:34:17 AM
The person who wrote this article should do their homework before spreading misinformation. Using a 5-ton system as an example was a poor choice. No manufacturers of air conditioners can meet the energy criteria set by the government in a 5 ton system if you check the ARI ratings with matched equipment. It can be achieved in a 4 ton and under system but the cost of the indoor unit and outdoor unit together at my cost would well exceed $3000. Do your homework! This kind of misinformation causes problems for the air conditioning professional who is trying to sell a new system to a potential client. I just completed a 4-ton conversion for one of my clients meeting the new energy criteria and the sale price was $7000. This was the best price they were able to get comparing three contractors. Sad
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