A bill was recently passed providing many provisions for realtors and home buyers. The energy efficient housing tax credits and grants promote green jobs and energy independence; ARRA invests in efforts to make homes and buildings more energy efficient.
This bill provides state and local governments with grants to perform energy audits, retrofits and income tax credits. Through 2010, homeowners will be able to claim a 30% tax credit for purchases of new energy efficient furnaces, windows and insulation.
Home owners can apply for this on their income tax return; qualifying home improvements must be completed between January 1, 2009 and December 31, 2010 and they must be performed on the tax payer’s principal residence. Some second homes can qualify for certain improvements including geothermal heat pumps, solar water heaters, solar panels and small wind energy systems.
A maximum of $1,500 can be claimed for this credit for 2009 and 2010 home improvements. New home construction credits can be claimed for geothermal heat pumps, photo-voltaic, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.
Use the IRS Tax Form 5695 to calculate your energy credit for home repairs in 2009 and 2010.
Funding will be available to update the nation’s electricity grid and to install smart meters on homes to help save consumers money. Additional funding will assist low-income households with weatherization assistance and to fund federally assisted housing (Section 8) efficiency efforts.
Other provisions of the Stimulus Plan include:
First Time Homebuyer Tax Credit
FHA, Fannie Mae and Freddie Mac Loan Limits
Neighborhood Stabilization
Commercial Real Estate
Rural Housing Services
Low Income Housing Grants
Tax Exempt Housing Bonds
Transportation Investments
Broadband Deployment
Professional real estate agents should be familiar with the various tax incentive and credits available to home buyers and home owners. These credits are helpful to first-time home buyers who, quite often, are not aware of the programs they could be utilizing. A professional real estate person can advise their clients of these helpful programs to assist them in their real estate investing or home buying experience.
Mark Goedert of Goedert Real Estate has been serving customers in South East Michigan for over 50 years. Their offices are open 7 days a week, providing the most innovative technological services available to REO property managers, banks, first-time homebuyers and home sellers.
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