There are always tax benefits for taxpayers who own their own home. New home buyers and remodeling homeowners can accrue tax credits when using green building techniques. Congress established these energy-efficiency tax incentives in 2005 which include tax code section 45L credit for the construction of energy efficient homes, 25C credit for retrofitting/remodeling existing homes and 25D credit for the installation of power production property in new and existing homes.

The National Association of Home Builders (NAHB) believes that green building is so important that they started to promote the concept in 2004 and created the first certification program for using green building techniques called Certified Green Builder.  A good majority of new home builders and remodelers are Certified Green Builders which include some of the top builders in St. Tammany Parish. In fact, some of the builders who build homes in Bedico Creek are Certified Green Builders.

There are many green building techniques that are used today which include double and even triple pane energy efficient windows that will keep in heat or keep solar energy out (Low-E and Argon gas windows), green roofs or cool roofs which will either absorb or reflect heat, high performance insulation that is design to seal a home more effectively against elements, enhanced ventilation that moves heat and cool air through the home, ceiling fans, water conservation fixtures, solar power, wind power, thermal solutions (high efficiency HVAC systems and programmable thermostats), ENERGY STAR® appliances and paint which stands up to harsh elements.

Where can we find the residential energy credits? Windows such as Low-E and Argon gas windows, high performance insulation, roof improvements, energy efficient doors, and ENERGY STAR® water heaters / AC’s / heat pumps can be applied toward the 25C credit. Be aware of the rule changes to the 25C credit which include a 10% rate and a $500 lifetime cap. Data indicates that roof improvements are the biggest claims for the 25C credit. The 25D is the more popular of the two tax codes.  The credits can be applied through the use of solar electric, solar water heating, wind turbines, geothermal heat pumps and fuel cells. Solar electrical remodeling won for the most claimed activity for the 25D credit. In 2012, the latest IRS tax data, $1.9 billion cost for solar electric and $700 million for geothermal heat pumps qualified for the 25D credit.  The total for 2012 was $3 billion in qualified installations that were connected to the 25D.

Going green has two great benefits for the consumer as a homeowner and a taxpayer, you not only save on your monthly energy bills but you can save on your taxes with these tax credits. Builders also benefit and should consider incorporating the 25C and 25D qualified green building products into new housing and remodeling projects.

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