Federal Incentives Make it Easier to Upgrade Homes

For many shopping the Houston real estate market, the appeal of an older home is irresistible.  Houston has everything from 1920’s Craftsmen-style bungalows in the Heights neighborhood to stately colonials in West University, and while their vintage stylings might be charming, the utility bills often aren’t.

Let’s face it – Houstonians use a lot of energy.  (If you don’t believe it, just take a neighborhood stroll one August afternoon and listen to the A/C compressors hum.)  And when you start trying to heat or cool a home with an old HVAC system or drafty windows, you’ve just made your energy usage – and cost – that much higher.  But, thanks to a couple of federal programs, making some energy upgrades to your home will cost you less green – whether you’re planning to list it on the Houston real estate market soon or stay in it awhile.

Appliance Rebate Program

As part of the beloved stimulus bill, a pool of $300 million was made available to states to provide rebates for the purchase of energy-efficient appliances and home systems, of which Texas’ share is $23 million.  The purchases must be replacing an old appliance, and there is a limit of two rebates per household.  Also, you must reserve a rebate before making the appliance purchase.  Here are the details…

 What is included: 

- refrigerators
- freezers
- A/C units
- clothes washers
- dishwashers
- air source heat pumps
- hot water heaters

How much: Ranges from $45 to $1600, depending on appliance type and model
 When:  Rebate reservations start April 5; purchase period is April 16-25 for most appliances
 For more info:  www.texaspowerfulsmart.org/rebate

Energy Tax Credits

No doubt you’ve heard of this, as every window and furnace salesman in a 30-mile radius seems intent on flooding our mailboxes with reminders.  In case you haven’t heard, the federal government is offering a tax credit for purchases of certain energy-efficient products or renewable energy systems for the home.  Rather than providing cash back, the tax credit reduces your tax liability so that you’ll owe less at tax time next April.

 What is included: 

- windows
- doors
- roofs (metal or asphalt)
- heating and cooling systems
- insulation
- solar and wind energy systems

 How much:  30% of cost, up to $1500 (labor not included in some cases)
 When:  Through December 31, 2010
 For more info:  www.energystar.gov/taxcredits

To be sure, it takes some cash to take advantage of these programs, and we shouldn’t expect a new A/C unit necessarily to have a 100% payoff in terms of home value.  But, as home buyers become more eco-conscious (and pay closer attention to their utility bills), energy efficiency will become a larger factor in home purchases.  Making some upgrades now can make your home more attractive to buyers in the long run – and in the meantime save you some green on those monthly bills.