Remodeling Stimulus

Remodeling Stimulus
By: Nina Patel (REMODELING MAGAZINE 2009)

Companies, industries and individuals in the U.S. are wondering how the stimulus package will affect their bottom line, market or wallet. Starting on Feb 13 when Congress approved the package, officially known as the American Recovery and Reinvestment Act of 2009, association officials have been reviewing the 1000-plus pages document for details. The remodeling industry is looking to the section of the act that promotes green jobs and energy independence. The energy-efficiency and conservation tax incentives under section 25C were expanded at the end of 2008, but have been further revised. The act offers the following incentives for homeowners that would benefit the remodeling industry:
extends the tax code section 25C credit for energy-efficient home improvements through the end of 2010
expands the list of eligible improvements which now includes furnaces, energy-efficient windows and doors, insulation, and renewable energy such as geothermal heat pumps and solar
increases the credit rate from 10 percent to 30 percent
raises the lifetime cap from $500 to $1,500
In a press release, the National Association of Home Builders says congressional estimates indicate the new rules for the tax incentive will increase aggregate remodeling activity by more than $6 billion. "The new tax credit also aligns with industry research indicating that even the most aggressive efficiency goals for new homes won't make a dent in overall energy consumption. Instead, remodeling and retrofitting the nation's older homes is by far the more efficient solution," said NAHB Remodelers chairman Greg Miedema in the release.
Dan Taddei, director of education for the National Association of the Remodeling Industry (NARI), says the real challenge is to see if homeowners will weigh the credits against utility bill savings and decide to borrow money to make energy-efficient improvements. He says remodelers should educate themselves about the details of the tax incentive before approaching homeowners. Besides the federal credit, they should review state and utility rebates and credits. “As energy prices go back up, we’ll need to see more of these types of weatherization improvements—HVAC, water heating etc…methods to reduce the cost of these items will be important,” Taddei says.
For a list of eligible items visit: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits.
For state and local credits and rebates, visit www.dsireusa.org
Homeowners should keep manufacturer information and other details about the improvements and file IRS Tax Form 5695 with their taxes.

So as you can see predictions show that many consumers will be doing a lot of remodeling work and well if and when this time comes J.B. Contractors & Development, LLC wants you to be aware that we are here for you. We are experts in Remodeling. Please take a look at our website www.jbcontractors.org . We are equipped and ready to handle any of your remodeling and construction needs. Please give us a call at (281) 221-6066 to schedule an estimate.