Government Funds For Home Improvement

The United States government offers special financing and incintives for energy efficient home improvement.

As part of the EMERGENCY ECONOMIC STABILIZATION ACT OF 2008 special incentives have been added to the program.

The programs include:

Tax credits

Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements “placed in service” starting January 1, 2009, through December 31, 2010. See’s Federal Tax Credits for Energy Efficiency for a complete summary of energy efficiency tax credits available to consumers.

Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies.

Government Guaranteed Home Loans

If you are a home buyer (including first time home buyers), you can add up to $6,000 in energy efficient improvements to a government guaranteed or government insured home loan. The cost of the improvements can be added to the total loan amount. With the exception of the VA funding fee, these improvements are the only costs that can be added to the loan total. In order for the improvement to qualify, the improvement must offer enough of a financial offset to exceed the increase in PITI mortgage payment.

State Incentives

State incentives are offered for renewable energy including solar installments and wind generation.

U.S. territories, local governments, larger utilities and a few non-profit organizations. These incentives and policies into two groups: Financial Incentives include a variety of tax incentives, grants, loans, rebates, industry recruitment/support, bond programs, green building incentives, leasing/lease purchase programs and performance-based incentives. Rules, Regulations & Policies include public benefits funds, renewable portfolio standards, net metering, interconnection standards, line-extension analysis, contractor licensing, equipment certification, solar/wind access laws, solar/wind permitting standards, construction & design standards (including building energy codes and energy standards for public buildings), mandatory utility green power options, and green power purchasing policies.

Federal Grants

The amount of a grant shall not exceed 25 percent of the cost of the eligible project costs. The maximum amount of combined grant and loan made or guaranteed shall not exceed 50 percent of the eligible project costs. The funds must be used for purchase of renewable energy systems or energy efficiency improvements.

For more information about the Emergency Economic Stabilization Act of 2008, click here.

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