Subsidizing Your Home Improvements

Finding ways to pay for home improvements is at the top of many people's priorities list. Improving your house is a great way to add value and home equity. With the rising costs of home improvements these days it is easy to rack up thousands of dollars in bills. If you pay for everything out of your own pocket, you could easily become strapped for cash. However, there are ways to subsidize the improvements. Here are a few ways to subsidize home improvements. 

Tax Cuts

One way that you can help to subsidize your home improvements is through tax cuts. There are many home improvements that will allow you to deduct a portion of them on your income taxes. This will not provide you with money immediately at the time of the improvements; however, it can provide you with extra money down the road. It could result in a bigger income tax refund or amount to less money that you pay in taxes. Tax breaks are a delayed form of subsidization but they definitely make a difference.

Tax Credits

The Federal government has also put forth several ways to earn tax credits. With these tax credits, you can actually earn a dollar for dollar deduction on your taxes. Where tax deductions take money off of your taxable income, tax credits actually take dollars off of the end amount. There are several programs out there that will actually give you tax credits to improve certain aspects of your home.

Energy Efficient Appliances

Many people want to update their kitchens. Kitchens are one of the most important rooms in the house for adding value. Therefore, you will most likely want to upgrade your appliances at some point. When you do, there are a number of Energy Star certified appliances that could actually gain you a bit of a tax savings. 

Windows and Doors

Putting in new windows and doors is another great way to improve your home. Both of these things can also make you eligible for a tax credit. Energy efficient doors and windows can make a huge difference on your energy bills. Some estimates say that they could help cut your bills by as much as 25%. Over the course of a year, this will be several hundred dollars, which is a huge savings. 

In addition to the money that they save you on energy costs, you can also save some serious money on your taxes. You can get back up to 30% of the money that you spent on the new doors and windows. 

Solar Panels

Installing solar panels in your house can be a great way to save money on home improvements. Solar panels can make you completely independent of outside sources of electricity. The government offers some great programs to help you get yours installed with tax rebates and other incentives. 

Besides the savings that the government offers, you will save hundreds of dollars per year in electricity costs. 

 

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