Incentive, Rebate Programs Feed Green Growth

No one ever said selling green would be easy. Many times designers and dealers are either preaching to the converted or talking to a brick wall. But, there is one thing that always gets a customer’s attention – that other kind of green: money.

Everyone likes a little extra money back come tax time, so a good place to begin talking about sustainable remodeling is by counting the greenbacks clients can save by employing energy-efficient appliances, water-saving fixtures and other elements to make their overall home a little less impactful on the environment. And, why not? If manufacturers are eligible for tax credits from the government for designing and building products like energy- and water-efficient clothes dryers (and they are), shouldn’t clients get a break for buying them?

While the following is only a cursory listing of major federal programs and income tax credits, more information is widely available from the U.S. Department of Energy (www.energy.gov) and is compiled in other independent online databases such as North Carolina State University’s Database for State Incentives for Renewables & Efficiency (www.dsireusa.org) and green-focused building online sites such as Green Made Simple (www.greenmadesimple.com).

Cash for Caulkers – Passed in early May, Congress has allocated $6 billion for this plan. Officially known as the Homestar Energy Retrofit Act of 2010 (or H.R. 5019), the program offers two rebate program levels: silver, for light upgrades, would give homeowners the potential for 50% back on their investment; and gold, for more comprehensive energy upgrades would require a whole-home energy audit and subsequent changes must amount to a 20% total energy savings. Gold Star rebates would build on existing whole-home retrofit programs such as EPA’s successful Home Performance with Energy Star program.

Energy Star – The program, administered jointly by the U.S. Department of Energy and the Environmental Protection Agency, says on its federal tax credit site: “ENERGY STAR distinguishes energy-efficient products which, although they may cost more to purchase than standard models, will pay back in lower energy bills within a reasonable amount of time, without a tax credit.” The tax credit is 30% of cost up to $1,500; purchases must be made prior to December 31, 2010. The credit covers biomass stoves, HVAC, insulation, roofs, non-solar water heaters, windows and doors. Not all Energy Star-rated products are qualified, so be sure to visit www.energystar.gov to see if the product is covered.

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