Tax Credits With NEWPRO
The inconvenient truth for New England residents is that the costs of maintaining a home are rising steadily with no relief in sight. Heating and cooling energy costs are a big part of the equation, and many homeowners are considering the different types of energy-efficient upgrades they can make to help find some relief. Some of the more popular projects that can improve a home’s thermal performance include:
- Window replacement
- Exterior door replacement
- Siding installation
- Roof replacement
Government Tax Credits
The U.S. government is also keenly aware of the ballooning energy usage from homeowners and the strain it’s putting on utility companies trying to keep up with demand. One way the government encourages homeowners to seek out energy-efficient products whenever possible is by providing tax credits for individuals who renovate their homes using products that meet government-established energy-efficiency standards.
Established in 1992, the ENERGY STAR program is administered by the U.S. Environmental Protection Agency and independently certifies products that meet strict standards for energy efficiency. Individuals who have certain ENERGY STAR-certified products installed in their homes can be eligible for tax credits that can help mitigate the costs of a home improvement project.
To date, the program has helped American families and businesses save trillions of kilowatt-hours of electricity and avoid more than $500 billion in energy costs. It’s also helped in the battle against climate change by accounting for more than 4 billion metric tons of greenhouse gas reductions. Here are some examples of the credits available from the IRS:
- Exterior doors that meet applicable ENERGY STAR requirements. Credit is limited to $250 per door and $500 total.
- Exterior windows and skylights that meet ENERGY STAR Most Efficient certification requirements. Credit is limited to $600 total.
State Energy-Efficiency Incentives
The federal government isn’t the only entity offering incentives to homeowners who try to reduce their energy consumption. State governments also offer tax credits for certain types of upgrades that can improve a home’s thermal performance. Using Massachusetts as an example, you can receive a rebate if you significantly upgrade your home’s windows. Homeowners with single-pane windows that replace them with triple-pane, ENERGY STAR-certified windows can receive a rebate of $75 per window.
Reducing Capital Gains
Many types of home improvement upgrades don’t lead to immediate tax savings, but they can still benefit you overall. While not the same as a tax credit, the improvements you make to your New England home can provide another type of savings if you ever decide to sell. If you keep track of all the costs for your qualified home improvement projects, you can use the amount you spent on them to increase the basis of your home and, therefore, lower the taxable gain when you sell for a profit. The IRS will also let you exclude up to $500,000 of the gain from your taxes if you’re a married couple filing jointly.
ENERGY STAR-Certified Replacement Windows From NEWPRO
If you’re interested in taking advantage of federal and state tax credits, NEWPRO offers ENERGY STAR-certified replacement windows that meet the highest standards. Our UltraMAX windows feature:
- Composite frames that are up to 140% stronger than vinyl frames and a better insulator by more than 200%
- Triple-pane glass with low-E coating to help reduce UV rays that can heat the inside of your home
- Gas fills between the glass panes that help reduce heat transfer
- Seven-point compression seals that help prevent air drafts
Additionally, our windows are engineered for the New England climate, so you can count on them to provide reliable weather protection no matter what Mother Nature throws at them.
ENERGY STAR-Certified Exterior Doors
We’re also proud to offer ENERGY STAR-certified entry and patio doors that don’t sacrifice style for performance. Our entry doors come in insulated steel and energy-efficient fiberglass, and there are plenty of options that provide the look of natural wood.
We’re Ready to Assist
NEWPRO offers home improvement products that can result in up to $1,200 in tax credits per homeowner. We’ve been providing home remodeling upgrades for New England residents since 1945, and we’d love the opportunity to tell you more about our energy-efficient replacement windows and doors. We also ensure that all installation work is done by factory-trained technicians who are our employees, so the job gets done right the first time. And for added peace of mind, we back our products and workmanship with generous warranties.
Contact NEWPRO today if you’d like to schedule a no-obligation consultation with a member of our team.