If you’re concerned about fluctuating energy prices and want to make your home more comfortable and energy efficient, here are some resources to help you finance the improvements.
Home Energy Loans
Efficiency Maine offers low interest loans up to $25,000 for up to 20 years through its Maine PACE and Powersaver programs (with no closing costs). Use the loans to upgrade heating systems, weatherize your home, and make other improvements to cut your heating bills. For more info, visit www.efficiencymaine.com/pace.
Federal Tax Credits
Federal tax credits are available to homeowners for wind, solar and geothermal systems through 2016. The credit incentive is 30% of the cost of the project with no upper limit and they can apply to primary and second homes (but not rental properties). Learn more at www.energystar.gov.
State Rebates
Efficiency Maine currently offers rebates for solar electric, solar thermal and wind power of up to $2000 (residential projects) and $4000 (commercial projects). These rebates can be used in tandem with the federal tax credits, greatly reducing project costs. Learn more at www.efficiencymaine.com/renewable-energy.
Low-income homeowners and renters can also look into grants toward weatherizing at www.mainehousing.org/weatherization.
New Federal Tax Credits for Residential Energy Efficiency Projects
The recent “Fiscal Cliff” agreement included a “non-business energy property tax credit,” that offers homeowners up to a $500 credit for residential efforts for energy efficiency. In essence, this is a renewal of the energy efficiency tax credits for homeowners that were in place in 2011.
The American Taxpayer Relief Act extended the tax credit through the end of 2013 and also made it retroactive back to January 1, 2012. Therefore, any projects you completed last year or will undertake this coming year will qualify for the credit. The credit applies to the cost of building materials for insulation, exterior windows and doors that meet Energy Star requirements, and roofs. It also covers some air conditioners, heat pumps, furnaces and water heaters.
One caveat, homeowners are allowed a maximum tax credit of $500 for projects undertaken from 2006 through the end of 2013. So if you’ve already claimed a portion of the tax credit in earlier years, you will only be entitled to the balance you qualify for, up to $500.
