As a follow-up to the popularity of the “Cash for Clunkers” program, the federal government recently launched the Cash for Caulkers program as an incentive for homeowners to fix or update their homes for increased energy efficiency.  This program offers a 30% tax credit, up to $1500 per household, on the cost of (in most cases, only) the materials needed to make the fix, not the entire cost of the project.  As most of us know, labor costs account for a large portion of any home maintenance or remodeling project.  So, while the cause is noble, there are certainly some major limits for most homeowners.

Let’s take the issue of caulk, the namesake of the program.  Almost any home can be re-caulked with a case of caulking which can be purchased for about $100.  That’s about a $30 tax credit.  Yet if you wanted to hire someone to take care of the project for you, regardless of the labor cost, you’re still only looking at a $30 tax credit even though you may have spent hundreds of dollars for labor.  We’re not completely criticizing the program here, but this example shows the limitations homeowners will face that they may not be aware of.

Below is a breakdown of what the 30% tax credit (again, up to $1500 per household) can be used for.  These items do not include installation costs and are only included if they meet the efficiency standards set forth by the IRS:

• Windows, doors, skylights, and some storm windows and doors
• Insulation
• Caulking
• Weather Stripping
• Some metal and special heat reflecting asphalt shingles

There are, however, some high ticket items for which installation costs are included:

• Traditional, highly efficient HVAC systems that meet the energy requirements

And more, even higher ticket items which have no limit on the 30% tax credit:

• Geothermal heat pumps
• Wind turbines for residential use
• Solar hot water heaters
• Solar panels

If it costs you, say, $30,000 for one of these expensive items, you get a tax credit of $9,000.  The catch is that you have to be able to afford the $30,000 item in the first place - something most homeowners, especially in this economy, aren’t going to be able to do.  Perhaps I’m in a cynical mood, but it seems to me that people with money (who can afford such things in the first place) will benefit, whereas the average homeowner may just be able to save a few bucks if he buys his own caulking and installs it himself.

There is one exception, and the best deal for homeowners right now may be in window replacements.  Many window companies are selling the windows at an increased amount and providing the installation for free.  It’s a matter of just moving the numbers around, but it’s a great way for them to sell more windows and for homeowners to get more of a tax credit while the Cash for Caulkers program is in effect.

Being more energy efficient and going green is always a good thing, and at Riggs we routinely encourage homeowners to incorporate into their projects whatever level of green they can realistically manage and afford.  Saving a few bucks today, and a lot of bucks over the life of the investment is an added bonus.

Tom Green Remodeling, Home Maintenance cash for caulkers, Green Remodeling, Home Maintenance, tax credits

Last week, my son Bill and I attended a one day course called “Business Management for Building Professionals” at the St. Louis Home Builders Association.  It is a required course for all those seeking to become Certified Green Professionals.  Being a Certified Graduate Remodelor exempted me from having to take the course but Bill needed it for his Green designation.  I took it for the continuing education credits and because I thought I just might learn something.  The Certified Green Professional course followed the next two consecutive days.  I’m proud to say that Bill is the second CGP at Riggs Construction & Design.

There were about 25 people in attendance and only 4 considered themselves remodeling contractors.  Others were home builders, educators, real estate associates and a group from Laclede Gas.  About half were from out of town because St. Louis was as close as they could find the course.  When I took the CGP course a couple of years ago, there were about 75 people in the class and only two were from St. Louis!  Some traveled as far as Montana and Washington State to take the course.

Needless to say, I was very surprised not to see more remodeling contractors attending this course!  Green construction is not a trend or the “hot” topic that will fade with time.  It is here to stay and long overdue.  It seems that our area builders and remodelers are way behind the curve when it comes to understanding how important green building has become.  Our consumer is certainly aware of its importance because we get asked all the time about how they can incorporate green into their projects.  Although the courses are expensive and times are tough, it seems to me that becoming a CPG is an investment in the future of any construction company.

Tom Green Remodeling, remodeling Green Remodeling, remodeling in st. louis

Green building practices are not completely new.  Many of the techniques to acquire a LEED (Leadership in Energy Efficient Design) certification for your home have been plain old “good building practices” since long before LEED came along.

When I was a kid working for my father, one of my jobs was to grout between the foundation and the 2 X 4 plate that the entire house rested on.  It served two purposes; one was to prevent cold air and bugs from getting into the basement and the other was to help transfer weight evenly from the plate to the foundation.  I remember my dad making me do one house over again because I just shoved a little grout between the two and didn’t try and fill it in properly.  He explained (not very nicely as I recall) that there was a purpose to my job and if I didn’t do it right, the house wouldn’t be built according to his “good building practices”.

Then someone came up with the idea that a ¾” strip of fiberglass insulation between the foundation and plate would keep the cold air out.  Now, it is a 1/8” piece of foam!  LEED is bringing back many of those building practices that have been lost and adding many new ones.  That’s a good thing

Tom Green Remodeling, remodeling