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My new blog, Tracy DeCarlo's Home Building Lessons is live! For more practical ideas for building your home, click the above link.

Building or Remodeling?

Do yourself a favor and increase your knowledge of the construction process and your options. Being informed can have a direct positive effect on the bottom line, the conveniences inside your home, and the future cost of the running the home.

• Do you know how to select the most energy-efficient roofing?
• Do you know which commodes can save an average family of 4 approximately 7000 gallons of water per year?
• Do you know the difference between a positive and negative undermount sink and which one is easier to clean?

The Difference is in the Details: The Homeowner's Planning Guide to Building a Functional Home not only provides hundreds of tips like these, it also provides lives links to suppliers and organizations. This photograph-filled e-Guide shows you how to adjust the building sequence to your financial advantage while helping you create a healthy, energy-efficient home that works for your family—inside and out, from the foundation to the rooftop.

“With dozens of “how to build your new home” books available, what could be left out? Plenty, as author DeCarlo shows in her practical approach to topics often left out, forgotten, or given scant attention. Readers will thank her for raising subjects to consider in the earliest stages of planning a new home.”
-- Carol Smith, Author of "Building Your Home: An Insiders Guide"

• Click here for the Table of Contents
• Click here to place your order
• To read more about this home building reference manual visit www.DifferenceInTheDetails.com

A Special Thanks!

I’d like to thank Roberto Carrion for sharing the benefits he has experienced from following the advice in my book on documenting your home prior to insulation installation. The information and photos he shared inspired and contributed in large part to last month’s ezine, Don’t Forget This Last Step Before Insulation. Many thanks, Roberto, for taking the time to provide such wonderful feedback!

Are you leaving money on the table?
Incentives and Tax Credits for Builders and Homeowners

Are you leaving money on the table? Whether you’re the contractor or the homeowner, building a new home or remodeling, you may qualify for incentives and/or tax credits at the federal, state, and/or local levels.

• Tax Credit: A tax credit is a direct, dollar-for-dollar reduction of your tax liability; thus, a $1,000 tax credit reduces your tax bill by $1,000. Think of it as partial payment of the taxes you owe.
• Tax Deduction: A tax deduction reduces the amount of your taxable income in proportion to your tax bracket. Since the tax rate varies depending upon gross income, the amount of tax you save will vary based on your particular circumstances. For example, if your tax rate were 25 percent, a $1,000 reduction in income would result in a savings of $250 ($1,000 x .25).

Obviously, in most cases a tax credit is more valuable than a tax deduction.

BUILDERS: Are you building energy-efficient homes? If so, are you taking advantage of the $2,000 tax credit for such dwellings? Here’s the scoop:

Federal Tax Credit:

The Federal Government is currently offering builders a $2,000 tax credit for building a qualifying energy-efficient home. The home must achieve 50-percent energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements, and at least one-fifth of the energy savings must come from building-envelope improvements. Manufactured homes that conform to Federal Manufactured Home Construction and Safety Standards are also eligible for this credit.

These tax credits apply to new homes located in the United States whose construction is substantially completed after August 8, 2005 and that are acquired from the eligible contractor for use as a residence from January 1, 2006 through December 31, 2009. For more information, visit: Energy Star® Tax Credits for Home Builders

This tax credit is achievable. Several of the homes I’ve verified as green have earned it. To determine if your home will qualify, you need the services of a HERS (Home Energy Rating System) rater. A list of raters can be found at Find a HERS Rater.

The HERS rater will record the appropriate energy-efficient details of your home provide the results. By having this analysis done during the planning stages, you can see where you stand at a time when changes still can be made. Sometimes a small adjustment will make the difference between qualifying and not qualifying. The HERS rater will be able to give you options for achieving the credit.

State and Utility Incentives/Rebates:

Incentives vary among states and utility companies. Although www.DSIREUSA.org (the Database of State Incentives for Renewables and Efficiency) is a nationwide resource for state and utility incentives, it does not provide a complete listing of utility rebates for builders. Therefore, it’s important to check the Web site of local utility companies for additional incentive and/or rebate options. Check both residential and commercial listings, since builder rebates for residential construction are frequently listed in the commercial area. You also may want to contact the utility directly, since some companies employ personnel who specialize in walking you through their rebate process.

For example, one of the utilities in our area provides specialists who visit the builder, present their program, and are available to help with the details. Utility builder incentives can include rebates for installation of items such as high-performance windows, an ERV, reflective roofing, spray-foam attic insulation, injected wall insulation, and higher rated HVAC equipment. Utilities also may help pay for the services of a HERS rater or offer monetary incentives for achieving an Energy Star® certified home.

To make certain that you meet all necessary requirements, take particularly notice of the documentation the state or the utility requires so you can request the proper paperwork from subcontractors.

HOMEOWNERS: Incentives and tax credits are available for you, too.

This information will be helpful when designing the landscape plan and plotting the location of future trees, etc.

Federal Tax Credit:

• First-Time-Home-Buyer Tax Credit: A tax credit of up to $8,000 is available for qualified first-time home buyers who purchase a principal residence on or after January 1, 2009, and before December 1, 2009. Here’s a list of the main points. Detailed info is available at First Time Home Buyer Tax credit.
• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009, and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• Residential Energy Efficient Tax Credit: This credit applies to energy efficiency improvements in the building envelope of existing homes and for the purchase of high-efficiency heating, cooling, and water-heating equipment. Efficiency improvements or equipment must serve a dwelling in the United States that is owned and used by the taxpayer as a primary residence. The maximum amount of homeowner credit for all improvements combined is $1,500 for equipment purchased during 2009 or 2010. To access the details, visit DSIRE Residential Energy Efficient Tax Credit.
• Residential Renewable Tax Credit: This tax credit applies to solar-electric, solar-water-heating, fuel-cell, and small wind-energy properties.

A taxpayer may claim a credit of 30 percent of qualified expenditures for a system that serves a dwelling unit located in the United States and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is on a new home, the "placed-in-service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly, or original system installation and for piping or wiring to interconnect a system to the home. The maximum allowable credit, equipment requirements, and other details vary by technology. For more information, visit DSIRE Residential Renewable Energy Tax Credit.

State and Utility Incentives/Rebates:

Incentives vary between states and utility companies. For example, the state of Florida offers rebates for solar water heating, photovoltaics, and solar pool heating. Utility incentives can include installation of energy-efficient items such as efficient HVAC equipment, duct/air sealing, building insulation, high-performance windows, cool roofing, solar screens, and window film.

Fortunately, www.DSIREUSA.org (Database of State Incentives for Renewables and Efficiency) does a pretty good job on keeping track of homeowner rebates, but I would also suggest visiting the website of your local utility or giving them a call to ensure you have the latest info. I’ve found it necessary to call the utility provider to get the full details of their rebate process anyway.

Notice the paperwork the state or the utility requires so you can request the proper documents from the contractors.

IS THERE A SUBJECT YOU'D LIKE ME TO COVER? Let me know by sending an email to tracy@tracystips.net.

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Tracy DeCarlo, author of "The Difference is in the Details" publishes the idea-packed, monthly e-zine "Tracy's Home Building Tips." If you're ready to learn how to plan a more durable, energy-efficient, and easy-to-live-in home, get your FR*EE tips now at www.DetailedSolutions.net.

Tracy DeCarlo owner of Detailed Solutions, Inc. and One Stop Green Home Certification, has more than fourteen years' experience in the residential construction industry. As a Home Building Function Analyst, Certified Green Professional, Green Certifying Agent, and Certified Aging-in-Place Specialist, Tracy addresses the functional aspects of home construction, design, and usage, including items such as energy efficiency, disaster mitigation, air quality, aging in place, green building, plumbing, electrical, lighting, and storage.

By working with homeowners to focus on their daily habits and preferences, she helps them create living spaces that support and compliment their lifestyles, while at the same time teaching techniques to manage the bottom line.

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• What topics would you most like to see covered in upcoming issues of "Tracy's Home Building Tips"?

• How has this e-zine helped you to improve your design or avoid change order charges?

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Tracy DeCarlo, Detailed Solutions, Inc.

P.O. Box 161644

Altamonte Springs, FL 32714, United States

Phone 407-814-2328

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