Renewed and increased in 2009 under President Obama’s stimulus legislation, the energy-efficient tax credit for existing homes (Internal Revenue Code Section 25C) is set to expire at the end of 2010. Home owners have only two more months to take advantage of the tax credit for products that help them save energy and reduce their utility bills.

The tax credit for efficiency upgrades in existing homes is available for 30% of the cost, up to a $1,500 limit for 2009 and 2010, for the installation of certain types of insulation, windows, roofs, water heaters, heat pumps, air conditioners and furnaces.

“This tax credit is really making a difference,” said Greg Miedema, president of Dakota Builders in Tucson, Ariz. “One of our customers purchased an efficiency mini-split HVAC and high-efficiency windows they weren’t previously considering because the tax credit paid for the upgrades and those upgrades will also bring them additional savings in the future.”

Congressional economists projected that the energy-efficient tax credits would generate an estimated $6 billion in remodeling work by the end of 2010.

Scott Sevon of Men at Work Chicago, a remodeling and new custom home specialist based in Chicago, can attest to the benefits of the credits for the remodeling industry. “Personally, we’ve had a good year. We’ve reached out to consumers to educate them about credits and savings that are available, and with the help of Pella Windows, we were able to show them how to claim the credit and provide the right paperwork to do so. Losing this credit will be detrimental to both consumers and small and medium remodeling businesses, like ours.”

Although NAHB is working with members of Congress to extend these tax benefits, there is no guarantee that the tax credits will be available for energy-efficient upgrades that occur after Dec. 31.

More information about the kinds of products that qualify and instructions for obtaining the credit before the end of the year are available at www.nahb.org/efficiencytaxcredit.

Learn How to Run a Successful Remodeling Company

“The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through NAHB BuilderBooks, shows how to use proven management systems to run a successful remodeling company.

The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs.

To view or purchase this publication online, click here, or call 800-223-2665.

'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at NAHB BuilderBooks, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler. 

The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house.

To view or purchase this publication online, click here, or call 800-223-2665.