From dramatically reducing your utility bills to ensuring your home is healthy and safe, an Allbritten Comprehensive Home Assessment will reveal the smarter way to prioritize your home energy upgrades. Lots of contractors are offering them, however, it’s important to get a comprehensive audit that is accurate and actionable.

To be accurate, the audit needs to include a thorough inspection and a range of diagnostics tests. To be actionable, solutions need to be recommended and easily understood by you and any installation contractor you might hire to complete them.

A simple “clipboard audit” or home energy rating won’t cover both of these for you, so make sure you get what you need. And don’t waste your money on what you don’t!

During a comprehensive home energy audit, a (certified & trained) home performance advisor should conduct a variety of tests customized for your home, including:

• Utility Bill Analysis — to determine usage patterns and look for ways to reduce looking at your electric and gas (or oil or propane) consumption
• Blower Door Test — to measure and locate all the sources of air leaks in your home
• Infrared Scan — to identify hidden defects including insulation gaps, air leakage, duct leakage, and moisture issues
• Visual Inspection — to find evidence of problems affecting the durability of your house
• Insulation Inspection — to determine insulation levels in various areas of your home’s shell
• Attic Inspection — to identify evidence of maintenance problems, verify insulation, check for moisture damage to roof from attic side.
• Furnace, Boiler, Air-Conditioner, Heat Pump, and Hot Water Equipment Inspection — to examine the overall condition of your heating, ventilation, and air conditioning equipment.

This includes several of the following tests:

 

• Carbon Monoxide Tests — to measure carbon monoxide levels in the flue gases of your heating appliances and in the air of your house to ensure safety
• Combustion Draft Tests — to ensure that your combustion appliances are venting properly and that combustion gases are not being dumped into or pulled back into your house
• Combustion Efficiency Test — to measure the efficiency of your heating system
• Flue Pipe Exhaust Inspection — to examine your combustion equipment flue pipes for blockages, disconnects, or other unsafe conditions
• Duct Air Flow Test — to determine the amount of air moving through your duct system (available in certain regions).
• Duct Leakage Test — to measure the leakiness of your duct system (in some areas, as much as 30% of the conditioned air moving through ducts leaks directly outside!)
• Visual Inspection for Mold and Moisture Sources — to look for areas where there is evidence of mold or high humidity.
• Visual Inspection for Indoor Air Quality Indicators — to look for evidence of potential sources of indoor air pollution
• Exhaust Fan Inspection — to measure whether fans are moving enough air to properly ventilate your home, and should include an inspection of the exhaust fan ductwork to ensure proper venting
• Clothes Dryer Venting Inspection — to ensure dryers are vented properly to avoid moisture and combustion safety problems
• Lighting Upgrade Inspection — to identify opportunities to replace incandescent lighting with more efficient fluorescent and LED bulbs and fixtures that use less energy and last longer
• Appliance Inspection — to look for opportunities to save money and improve performance
• Pool and Well Pump Analysis — to check pumps for sizing and efficiency and look for opportunities to reduce pumping costs

In most homes, the audit procedure should take about two to three hours and create minimal disruption to your regular household routine.

A comprehensive assessment should also include a full “test out” conducted after all the improvements are installed. This will ensure the best results and ensure the safety of your home.

There’s never been a better time to make energy efficient upgrades.  State and utility incentives can be combined with the federal tax credit.

As of Dec. 17, 2010 the federal energy efficiency tax credit has been extended through 2011, but the federal government has significantly changed the credit limits and eligibility requirements.

For jobs installed between January 1, 2011 and December 31, 2011, the credit is no more than 10% energy efficiency improvement costs, up to a maximum of $500. Special credit limits have been put on certain qualifying equipment. For example:

• High efficiency furnaces and boilers – $150
• Air Conditioners and heat pumps – $300
• Main air circulating fans – $50
• ENERGY STAR Windows – $200
• Energy efficient water heaters – $300

 

This $500 cap will apply to anyone who received the credit from Jan. 1, 2005 to present. So if you’ve claimed a cumulative credit of $500 or more of the tax credit since Jan. 1, 2005, you won’t be eligible for the 2011 extension. If you’ve claimed less than $500, you are eligible for the difference with qualifying measures.

Certain renewable energy tax credits for solar PV, solar hot water, and geothermal, for example, remain in place.

Frequently asked questions

Q: How much is the tax credit for?

A: For most improvements, the tax credit is 10% of the cost, up to $500 Note: The recent 2010 Tax Credit expired on December 31, 2010 for 30% of the cost up to $1,500.

Q: How do I claim the tax credit?

You will need to include IRS Form 5695 (which isn’t yet available for 2011) when you file your taxes. Remember to keep receipts proving that you purchased the improvements between 1/01/2011 and 12/31/2011 and a copy of the manufacturer’s certification, which your contractor should be able to provide. Consult your accountant or tax preparer for additional guidance.

Q: Does that include labor and material?

A: For improvements on the Shell of your home, (windows, doors, roofing and insulation), the tax credit covers the 10% of cost of materials only. Improvements such as new HVAC systems, heat pumps and boilers will cover 10% of the total installed cost, both labor and material costs. These are subject to certain caps. For example, furnaces and boilers are eligible for $150. Windows, $200.

Q: What about  for renewable energy sources?

A: Solar water heaters, solar panels, and geothermal heat pumps are eligible for a 30% tax credit for labor and material cost with NO cap on the credit.

Q: What if I made improvements before 2011, will a tax credit apply?

A: Unfortunately no, the tax credit only applies to energy improvements installed after January 1, 2011. You may be eligible for a credit on a prior year’s return. In 2011 the credit only applies if you have not received more than $500 in credits since 2006. And you cannot exceed $500 in aggregate credits since 2006.

For example, if you claimed $900 in credit in 2010, you are not going to be eligible for the 2011 credit.

If you claimed $100 in 2007, and $250 in 2009, you may be eligible for a credit of up to $150 on qualifying measures.

Q: When do these tax credits expire?

A: December 31, 2016 for renewable energy sources and December 31, 2011 for all other energy-efficiency improvements.

Q: Could I apply this to my second property?

A: This is applicable to the taxpayers Primary Residence only. Solar water heaters, solar panels, and geothermal heat pumps may apply to second homes or rentals.

Q: What about energy-efficient appliances?

A: Federal tax credits do not apply to small appliances. Local state and city credits may be available.

Q: Can I use the Federal tax credits in 2009, 2010, and 2011?

A: Yes, but the Federal tax credit has a lifetime cap of $500 on efficiency measures (you may have exceeded that in 2009 or 2010).except for renewable energy sources. Therefore, once you reach the $500 limit, you can no longer apply the tax credit.

Home Improvements

For 2011, tax credits are now available for energy-saving home improvements:

• Energy-efficiency improvements must be installed from January 1, 2009 through December 31, 2011 (renewables go through 2016—Hint: go for efficiency first!)
• For energy-efficiency, improvement must be for taxpayer’s principal residence.
• For renewables (geothermal heat pumps, solar water heaters, solar PV, and wind) second homes and rentals qualify.
• $500 is the maximum total amount that can be claimed for all products placed in service in 2011 for most energy-efficiency improvements, but qualifying renewables are not subject to this cap.
• Save your receipts and the “Manufacturer Certification Statement” (your contractor should be able to supply this) for tax record keeping purposes.
• Improvements made in 2010 will be claimed on your 2010 taxes (filed by April 15, 2011) — use IRS Tax Form 5695 (2010 version) under the 2010 requirement.
• Improvements made in 2011 will be claimed on your 2011 taxes, filed by April 15, 2012.

There’s never been a better time to make energy efficient upgrades.  State and utility incentives can be combined with the federal tax credit.

As of Dec. 17, 2010 the federal energy efficiency tax credit has been extended through 2011, but the federal government has significantly changed the credit limits and eligibility requirements.

For jobs installed between January 1, 2011 and December 31, 2011, the credit is no more than 10% energy efficiency improvement costs, up to a maximum of $500. Special credit limits have been put on certain qualifying equipment. For example:

• High efficiency furnaces and boilers – $150
• Air Conditioners and heat pumps – $300
• Main air circulating fans – $50
• ENERGY STAR Windows – $200
• Energy efficient water heaters – $300

 

This $500 cap will apply to anyone who received the credit from Jan. 1, 2005 to present. So if you’ve claimed a cumulative credit of $500 or more of the tax credit since Jan. 1, 2005, you won’t be eligible for the 2011 extension. If you’ve claimed less than $500, you are eligible for the difference with qualifying measures.

Certain renewable energy tax credits for solar PV, solar hot water, and geothermal, for example, remain in place.

Frequently asked questions

Q: How much is the tax credit for?

A: For most improvements, the tax credit is 10% of the cost, up to $500 Note: The recent 2010 Tax Credit expired on December 31, 2010 for 30% of the cost up to $1,500.

Q: How do I claim the tax credit?

You will need to include IRS Form 5695 (which isn’t yet available for 2011) when you file your taxes. Remember to keep receipts proving that you purchased the improvements between 1/01/2011 and 12/31/2011 and a copy of the manufacturer’s certification, which your contractor should be able to provide. Consult your accountant or tax preparer for additional guidance.

Q: Does that include labor and material?

A: For improvements on the Shell of your home, (windows, doors, roofing and insulation), the tax credit covers the 10% of cost of materials only. Improvements such as new HVAC systems, heat pumps and boilers will cover 10% of the total installed cost, both labor and material costs. These are subject to certain caps. For example, furnaces and boilers are eligible for $150. Windows, $200.

Q: What about renewable energy sources?

A: Solar water heaters, solar panels, and geothermal heat pumps are eligible for a 30% tax credit for labor and material cost with NO cap on the credit.

Q: What if I made improvements before 2011, will a tax credit apply?

A: Unfortunately no, the tax credit only applies to energy improvements installed after January 1, 2011. You may be eligible for a credit on a prior year’s return. In 2011 the credit only applies if you have not received more than $500 in credits since 2006. And you cannot exceed $500 in aggregate credits since 2006.

For example, if you claimed $900 in credit in 2010, you are not eligible for the 2011 credit.

If you claimed $100 in 2007, and $250 in 2009, you may be eligible for a credit of up to $150 on qualifying measures.

Q: When do the tax credits expire?

A: December 31, 2016 for renewable energy sources and December 31, 2011 for all other energy-efficiency improvements.

Q: Could this apply to my second property?

A: This is applicable to the taxpayers Primary Residence only. Solar water heaters, solar panels, and geothermal heat pumps may apply to second homes or rentals.

Q: What about energy-efficient appliances?

A: Federal tax credits do not apply to small appliances. Local state and city credits may be available.

Q: Can I use the Federal tax credits in 2009, 2010, and 2011?

A: Yes, but the Federal tax credit has a lifetime cap of $500 on efficiency measures (you may have exceeded that in 2009 or 2010).except for renewable energy sources. Therefore, once you reach the $500 limit, you can no longer apply the tax credit.

Home Improvements

For 2011, tax credits are now available for energy-saving home improvements:

• Energy-efficiency improvements must be installed from January 1, 2009 through December 31, 2011 (renewables go through 2016—Hint: go for efficiency first!)
• For energy-efficiency, improvement must be for taxpayer’s principal residence.
• For renewables (geothermal heat pumps, solar water heaters, solar PV, and wind) second homes and rentals qualify.
• $500 is the maximum total amount that can be claimed for all products placed in service in 2011 for most energy-efficiency improvements, but qualifying renewables are not subject to this cap.
• Save your receipts and the “Manufacturer Certification Statement” (your contractor should be able to supply this) for tax record keeping purposes.
• Improvements made in 2010 will be claimed on your 2010 taxes (filed by April 15, 2011) — use IRS Tax Form 5695 (2010 version) under the 2010 requirement.
• Improvements made in 2011 will be claimed on your 2011 taxes, filed by April 15, 2011.