The Federal government has funds available for making green home improvements.
The federal government has allotted money for grants in the form of financing programs and tax credits to encourage people to move towards greener alternatives when considering home improvements. Through legislation passed by Congress, money has also been allotted to give consumers rebates and incentives to those who have purchased and installed energy-efficient appliances and home energy systems. Does this Spark an idea?
Tax Credits
There are several tax credits available to individuals who have purchased energy-efficient items such as biomass stoves, heating, ventilating, air conditioning units (HVAC), installed insulation, installed energy-efficient roofing, water heaters and energy-efficient windows and doors. If you have purchased and installed any of these items, you will receive a tax credit of 30 percent of the cost or a maximum of $1,500. The only stipulation is that these have to have been installed in an individual's primary residence.
Another tax credit offered is one for people who have installed geothermal heat pumps, small residential wind turbines or solar energy systems. If you have installed any of these systems, you qualify for a tax credit of 30 percent of the cost. Primary and second homes are included in this credit.
One other tax credit offered, is for individuals who have installed residential fuel cells. For those who qualify, a credit will be given which will be thirty percent of the cost or up to $500 per 0.5-kilowatt hour.
Financing
The Department of Energy offers financing for energy-efficient homes or help finance home improvements to make it an energy-efficient home. Program benefits include possibly qualifying for a larger home due to lowered utility bills---the savings you receive can afford you a larger mortgage.
To qualify for these government loans, your home first needs to be rated. Once it is rated, you will be given a report on how energy-efficient your home is or make it more energy efficient. The lender can add the cost of the energy-efficient upgrades to the mortgage or stretch the debt-to-income ratio for existing homes to help qualify individuals for a larger mortgage amount.
Weatherization Assistance Program
This program helps low income families make their homes more energy efficient. By making their homes energy efficient, it will help lower their utility bills. The program has helped families save an average of $437 per year on their utility bills. The federal government makes the funds available to the states and territories, who then manages how the money is dispersed. To apply for these funds, go to the state weatherization agency. The Department of Energy does not give these funds directly to individuals.
Rebates
Through the American Recovery and Reinvestment Act of 2009, the federal government has allotted money for consumers to receive rebates for purchasing qualifying Energy Star-rated appliances. While the federal government funds the rebates, you have to apply to the state you live in to receive a rebate.
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