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

People often asked me, “What was your favorite kitchen/bath remodeling project”?  I think they are always surprised by my answer because it isn’t about the biggest, fanciest or most costly job I’ve ever done but a decent sized kitchen project we did back in 1998.  That was when I realized the value of a good kitchen and bath designer.  Becky Fisk did the design for us and she turned a very average kitchen/breakfast room space into my client’s dream of work space efficiency and beauty.

The house was average in size and appearance but the people who lived there were anything but!  Becky and my clients hit it off immediately because Becky was smart enough to listen to what they wanted instead of coming in with pre-conceived notions of what she thought they would want and afford.  She also realized the husband was just as involved as the wife in the planning of the kitchen and he loved to cook as well!

What took place over the next few weeks was absolute magic!  My clients had a good idea of what they wanted and were able to communicate that to Becky.  Becky was tuned in to them so their dreams and her imagination and knowledge flowed together to create the best kitchen layout I’ve ever seen.  It was full of creative ideas and little amenities that would make any homeowner/chef gush with excitement.

Have you ever been to a party where everyone was gathered in the kitchen standing around talking and the host(ess) had to shoo everyone out so they could prepare hors d’oeuvres?  The working space in this kitchen was integral to the rest of the kitchen and the kitchen was integral to the main living space on the first floor.  No matter where you were during their parties, you were connected to the kitchen and as the host(ess) you got to enjoy the party because you were right in the middle of it!

What made this kitchen so special were the island cabinets that created a “barrier” around the working space yet still invited people in.  While working in the kitchen, the cook could still be involved in the rest of the living area yet be free to stay within the working kitchen.  There were many more cabinets along the perimeter of the kitchen and the refrigerator was right along the edge of the “barrier” so it was accessible to the cook and everyone else.  The curved island has a bar top counter with stools for socializing and eating and there is a large breakfast table as well.  The entire layout is comfortable and inviting for everyone.  It has all the right features such as a hanging pot rack and double ovens, yet for the person doing the cooking everything is at their fingertips.

Of course, having such wonderful clients makes any project more enjoyable and we’ve certainly had our share of them.  We’ve since updated the tops, fixtures and appliances in this kitchen but the cabinets are classic and timeless so this kitchen collaboration between Riggs Construction & Design, Becky Fisk and our clients will be enjoyed for many years.

Tom Kitchen Remodeling, remodeling