Green Issues and Recent Energy Stimulus Programs

April 22 is EARTH DAY

Recently the OBAMA Administration initiated the
American Recovery and Reinvestment Tax Act of 2009
on February 17th, 2009. 
 
With the new emphasis on things GREEN we should take a moment to consider day to day activities to promote recycling and resource saving techniques to better support this idea.
 
The term GREEN is synonymous with High-Performance or Efficient; getting the most out of a product or service by using the correct amount so as not to waste or by use of recycling to extend or renew the life of a resource.

Our local real estate market is not filled with NEW communities, but there are properties that can be found that are new, or extensively remodeled. This is particularly evident on the east section of Broward and the newer communities found as one travels west toward the Everglades. 

This page will address ideas that cover all resident types, be they single family home or condo or townhouse, single story property or high-rise.

Who qualifies for the Economic Stimulus Funds?

The tax credits that were previously effective for 2009, have been extended to 2010 as well. The tax credit has been raised from 10% to 30%.
The tax credits that were for a specific dollar amount have been converted to 30% of the cost. The maximum credit has been raised from $500 to $1500 for the two years (2009-2010).

However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
The $200 cap on windows has been removed, but the requirements for windows have been increased significantly. Not all ENERGY STAR windows will qualify.

Housing Incentive for first-time homebuyers provide first-time home buyers with a refundable tax credit of up to $8,000, up $500 from the original credit enacted last year, for purchases made this year (before Dec. 1,2009). The credit phases out for single taxpayers with adjusted gross incomes that exceed $75,000 (or $150,000 for married couples filing jointly). The buyer will forfeit the credit if he or she sells the house within three years.

Increase tax credits for residential energy efficiency improvements, such as new furnaces or insulation, to 30 percent through 2010, for up to $1,500.

Expand tax incentives for residential renewable energy properties bu removing the dollar caps on the 30 percent residential credit for solar thermal, geothermal and small wind property.

There are four categories of upgrades that are covered:
The credits for the home shell and HVAC are available if you make these investments anytime before Dec. 31, 2010.
1) Home-shell improvements like insulation, windows and sealing. These are designed to make the home tighter and close up leaks.
2) Home heating, ventilating and air-conditioning, or HVAC. This includes efficient air-conditioners and furnaces.
Investments in renewal energy systems are eligible for credit until Dec. 31, 2016.
3) Renewable energy technology like geothermal heat pumps, solar water heating, small wind generators and photovoltaic systems.
4) Hybrid and diesel cars.

How about upgrades that were made last year?

There are some tax credits available, but they are only for renewable energy technologies like geothermal heat pumps and solar panels, not for things like windows, doors, insulation and HVAC.

To claim credit for any investments made in 2008, fill out I.R.S. Form 5695. That same form will be updated in early 2010 to reflect the new changes.

Where can people go for more information?

Products need to meet certain criteria to qualify, so it’s a good idea to do some research.

The Alliance’s Web site, ase.org
 
The Tax Incentives Assistance Project, energytaxincentives.org, has information and links to I.R.S. forms.
 
Energy Star (energystar.gov) also provides details on qualifying products and estimated savings.

Individuals

Expand eligibility for Child Tax Credit

Allow households making at least $3,000 to subtract $1,000 from their tax bill for each child in 2009 and 2010. Under current law, the tax credit is of no use to families with incomes below $12,550.

Expand higher education tax credits

Expand the federal Hope scholarship for 2009 and 2010 to provide a tax credit of up to $2,500 a year for all four years of college tuition, instead of $1,800 a year for the first two years. Also, the credit would now be 40 percent refundable and cover costs of textbooks. The tax credit would phase out for individuals making between $80,000 and $90,000 and couples earning between $160,000 and $180,000. Allow computer-related expenses to be exempt under tax-advantaged college savings plans in 2009 and 2010.

Increase Earned Income Tax Credit

Increase the E.I.T.C. to 45 percent, from 40 percent, of the first $12,570 earned by families with more than three children in 2009 and 2010.

Transportation

Incentive for alternative vehicle

Increase the tax credit for purchasing plug-in hybrid vehicles to $7,500.

Incentive for car buyers

Allow those who buy a new vehicle in 2009 — with a price tag of up to $49,500 — to deduct state, local and excise taxes as well as interest on their car loan. The tax break is an above-the-line deduction, which means that it can be taken even by those who do not itemize other deductions on their tax returns. The deduction begins to phase out for single tax filers with adjusted gross income of more than $125,000, or $250,000 for married couples filing jointly.

Equalize mass transit and parking benefits

Equalize tax-free commuter benefits provided by employers for transit and parking at $230 per month for 2009 and index both benefits to inflation. Under current rules, only $120 of the mass transit benefit and $230 of the parking benefit is tax-free.

Small Business

Expand net operating loss carry-back provision for small businesses

Allow small businesses with annual receipts under $15 million to cut taxes by writing off current losses against profits earned in the past five years, instead of the usual two years.

Expand tax break for small business stock sales

Allow small businesses to exclude up to 75 percent of the gain from the sale of some stock held for more than five years.

Reduce holding period for taxation of companies that convert into S corporations

Under current law, if a taxable corporation converts into an S corporation, the conversion is not a taxable event. However, following such a conversion, an S corporation must hold its assets for ten years in order to avoid a tax on any built-in gains that existed at the time of the conversion. The bill would temporarily reduce this holding period from ten years to seven years for sales occurring in 2009 and 2010.

Provide incentive for hiring disadvantaged workers

Offer up to $2,400 in tax credits to businesses that hire certain disadvantaged workers like unemployed veterans and "disconnected youth."

Allow more small business deductions

Allow businesses to deduct up to $250,000 for capital investments made in 2009, with a total cap of $800,000. The limits were temporarily increased by Congress last year for investments made in 2008. Prior to that, small businesses could write-off $125,000 for capital expenditures, with a total cap of $500,000.

How you can participate.

So far I have given information on some of the highlights of this new initiative by the current administration. Here are ideas on how someone can participate easily and thoughtfully in execution of the GREEN idea.

If you've been waiting for better tax advantages for energy-efficient home renovations -- doors, heating and cooling equipment, insulation, windows, etc. -- you may want to act soon. The recent economic stimulus package (February 17, 2009) expands the types of home improvements allowed and triples the credit -- up to 30% of the improvement cost with a cap of $1500, and includes cap exceptions for some higher priced items like geothermal and solar equipment.

Per the new U.S. Internal Revenue Service section 25c, choose upgrades to save water and energy costs, add comfort, or simply to do right for the planet, and be ready to submit the appropriate IRS form (5695 Residential Energy Credit) for 2009 or 2010 and supporting documentation. These tax credits cover a range of items for homeowners put into service between January 1 and December 31, 2009.

Since making energy-efficient upgrades to older homes (built before 1983) can help conserve overall residential energy use far more than even the most stringent energy-saving measures for new homes, this enhanced tax credit may also affect global warming. A 2008 California study revealed that retrofitting these older homes may boost cost-savings and carbon-savings by four to eight times compared to new home energy efficiency options.

Cleaning Supplies is a good place to begin.

The Greenerblog found at http://www.homeandgoinggreen.com/ has great simple ideas for home and at work that can be easily implemented Topics of: How To Go Green At Work And Save Too - 5 Tips, How To Go Green And Save Too In 7 Simple Tips, Go Green In Your Home - And Save Too.

Phantom load - power drain – unplug those appliances when not in use ! Did you know that even when an appliance is turned off that is still sucking out and wasting energy? Take a look around do you see the glowing "eyes" of your TV, DVD player, cable box, i-Pod charger, coffee maker, etc...staring back at you? They are turned off but still sucking energy and their glowing eyes are mocking you and reaping havoc on your energy bills. An electronic device that has a phantom load uses energy even when turned off, these include appliances that are remote powered (these are the biggest drainer of energy), have external power supplies, continuous LCD displays, and electronics that are turned on by a switch or a push button.

So how do you exorcise these evil monstrosities? EASY- simply unplug all appliances that are not needed 24 hours a day (cell phone chargers, TV, coffee makers, toasters, non-built in microwaves, printers, etc...). If you don't want to hassle with unplugging 20 different cords every day simply enlist the help of power strips or outlets that are controlled by light switches.

Appliances 

Emergency Lighting 

Emergency Radios

Energy Star Products

Solar Battery Charger

Water Filters 


Milk Paint –
organic paint, non-toxic and zero VOCs.
VOC = Volatile Organic Compounds VOCs have been shown to cause cancer or developmental problems

How to reduce the toxic chemicals in your home and garden can be found at http://www.reduce.org/toxics/

Interested in projects that are Energy Saving or Retrofit to be more green in design and operation? Check out the Assisted Housing Stability and Energy and Green Retrofit Investments Stimulus program.

When you contemplate projects that are green in nature, it is highly recommended from almost all sources that you start by getting an energy audit of the structure to see how air tight the shell is in preventing heat and cooling losses. Contact your local power utility to see if they offer this energy audit as part of their customer services.

Heating and Cooling upgrades. 

Geothermal Heat Pumps in Florida operate in an identical fashion to Water-Source Heat Pump units. However, without the need for a boiler or cooling tower, they save substantial energy costs and space. The water loop system is underground and the units are in the building. Thus, the environmentally friendly geothermal system preserves the architectural design of a building naturally. Geothermal systems can seem expensive because of the higher up front cost. But they typically have the lowest life cycle cost of any system. In many situations you can realize the saving in as little as 5 years. Pair this with the 30% tax credit Uncle Sam provides and you're in the "green" quicker than you think. At the same time they add value to your home because of the decreased costs of energy bills.

Financing Options: 

Many of you are ask, how do I get the money to put these systems in place? There are a few options available with the use of an Energy Efficient Mortgage (EEM).

1) FHA allows lenders to add up to 100% of energy efficiency improvements to an existing mortgage loan by insuring a loan of up to 5% of a home's appraised value with certain restrictions. FHA EEM's can be used to purchase a home that is already EnergyStar certified or to make energy efficient improvements to a home you are buying.

2) VA EEM's allow you to take $6000 for improvements on top of the purchase amount.

3) Conventional loans allow homebuyers to borrow up to 15% of an existing home's appraised value for improvements documented by a Home Energy Rating (HER).

Some lenders can adjust your debt-to-income ratio by 2% to account for the energy savings you will realize with energy efficient improvements. For more details on the program that works best for you, contact your lender. Be sure to ask your lender about energy efficient improvements and re-financing options for the home you already own.

Green Home Information

Green Idea Payback Timeframes - Estimated!

These are all estimates found in various articles and not guaranteed by any means – more of a guide than a yardstick.

One Year or less: Programmable Thermostat / Compact fluorescent light bulbs / Hot Water Heater blankets / Low flow showerheads / Heating System tune-up / Seal duct leaks / Energy Star dishwasher / Low flow toilets
2-4 Years: Solar outdoor lights / Windows / Insulation / Solar Attic fan / Energy Star Light Fixtures / Low or No VOC paints (improve indoor air quality) / Low Flow faucets / Water Heater / Tankless Water Heater (on demand) / High Efficiency Furnace / Trees / Energy Star Clothes Washer
5-6 Years: Ceiling Fans / Energy Star Refrigerator / Bamboo, Carpet and/or Cork Floors (can improve indoor air quality) / Composting to create rich soil for your organic garden / Decking with sustainable long lasting maintenance free materials that are green / Solar Tubes / Dual Flush Toilets
7-10 Years: Radiant Floors / Insulation in double walls and floors / Overhangs / Solar Hot Water / Solar Electric (PV) / Geo-thermal / Green Roofs

Tune up and Remodel ROI for going Green

Have a project in mind for your property – review these article for an idea of what the Return on that Investment may be. 

                                                 Tune up     ~ or ~   Remodel


Green is catching on – but there is lots of room for improvement

I hope this article will serve to guide to how to make GREEN happen in their everyday lives.

More than 90 percent of Americans are recycling - but fewer than 5 percent have taken recommended green actions such as driving less or reducing their utility use, according to a new Harris Poll on green living. The poll - for which The Nature Conservancy provided input and advice - found that 53 percent of those surveyed have taken steps to green their lives.
But it also found a substantial lack of knowledge about how to go green - and skepticism about whether greening one's life makes a difference to the environment: 34 percent of those surveyed said they hadn't changed their lifestyle because they "did not know what to do." 29 percent of respondents believe that greening their lifestyle won't make any significant difference on the environment. "This poll shows that green living is certainly at the forefront of our minds," says Stephanie Meeks, the Conservancy's acting president and CEO.

"Yet people are getting lost in the maze of information on how to lessen our environmental impact. The bottom line is that even the smallest lifestyle change can have significant impact in the long run."

Recycling and Paying Bills Online, But Not Changing Light Bulbs While recycling is widespread in the United States and 73 percent of those polled are paying their bills online to save paper, other often-recommended ways to green your life are going largely ignored:
5 percent are driving less by combining errands, walking more, etc.
4 percent have reduced their utility use.
3 percent have purchased hybrid cars.
3 percent have changed out incandescent light bulbs for compact fluorescent ones.
Yet if every American home switched out just one incandescent light bulb for a compact fluorescent one, the United States would save enough energy to light more than 3 million homes for an entire year, according to the U.S. Environmental Protection Agency and the Department of Energy.

"Making small changes to help save the planet can help your pocketbook as well," adds Meeks. "In the case of compact fluorescent light bulbs, you're paying more on the front end, but the cost savings in the long run will beat out the incandescent bulbs, hands down."

Other poll results:
49 percent are trying to buy locally-produced food and/or goods.
47 percent are buying green household products.
39 percent are bringing their own reusable bags to stores instead of using paper or plastic.
16 percent are carpooling.

Optimism on Environmental Issues

The poll also found noticeable optimism on environmental issues among the American public. Seventy-two percent of the poll's 2,605 respondents believe their personal actions are significant to the health of the environment.

And although only 42 percent of U.S. adults were initially familiar with the phrase "environmental sustainability," two-thirds believe that it is possible to live in an environmentally sustainable way.

The phrase "environmental sustainability" was more familiar to younger poll respondents than older ones. More than 45 percent of those age 18-43 understood the term's meaning, while only 30 percent of those aged 63 and older knew the term.