This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Remodel Your Home, Get a Tax Credit

If you can't afford to sell your home and you've got money set aside for remodeling, there's good news for you, thanks to the Feds.

The massive Recovery and Reinvestment Act signed by the president this month to help boost the economy contains tax credits that can benefit your 2009 or 2010 returns. There were credits for making energy-efficient upgrades to your home this year, but the new law increases their benefits and extends them into 2010. For instance:

  • The tax credit has been bumped up to 30% from 10%.
  • The $200 credit cap on new windows has been taken out. (Good thing, unless you're replacing one window that's a foot square in size.)
  • The maximum credit you can receive for a year has gone up from $500 to $1,500. However, if you're making expensive improvements like adding a geothermal heat pump, a solar water heater or solar power cells, you can take a credit for a full 30% of the cost.

Some businesses are gearing up for work when the credits become more well-known. "I've had some calls from people after it became law, and I plan to use these tax credits in my advertising," says electrical contractor Rich Johnson of Los Angeles. "If you have the money for the project, now's the time to do it. It's not going to get any cheaper."

The credits work for people remodeling their homes, but the rules are different for those building new houses. Basically, for a new home, you're eligible for credits with projects that go above and beyond, such as solar cells or geothermal heat pumps, but not items that normally would have to be put into a new home, such as windows, insulation, etc.

Here are some costs of energy-saving projects where you could pick up the 30% credit:

Windows: Around $750 per window installed. (Double-check with the contractor to make sure the model you're buying qualifies for the tax credit.)

Roof: $5,000 to $20,000, depending on the materials for a 2,000-square-foot home. You only get the credit if you've installed an EnergyStar-rated asphalt or metal roof.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs