Did you know that the Federal Government has created programs and incentives that can make your remodeling project less daunting?
That’s right. Federal, state and local government incentive programs help homeowners improve the value of their homes, which supports the economy, and helps strengthen communities.
There may be a bit of paperwork and red tape to work through, but the savings will be worthwhile. When you do finalize the paperwork, keep in mind KBC’s five biggest remodeling myths to help the process go smoothly.
Government programs usually come with a few common rules for eligibility:
- You must apply before doing the work. Incentives cannot apply retroactively to previous remodels.
- These programs primarily support basic remodeling designed to increase property value, not luxury items.
- Programs usually require oversight, such as an inspection beforehand, and later on to make sure the project is executed according to written plans.
Exemptions and Programs
Property tax exemptions can also help save money during a kitchen remodel. Eligibility varies by county or town, but typically any owner of one property can qualify. The property generally must be owner-occupied. These programs allow for total or partial exemptions from your local property taxes when remodeling.
Counties rarely itemize which remodels are allowed. Normally, they define remodeling in broad terms such as material, actual, and permanent property improvements that increase value. But keep in mind that relief from property tax is only temporary.
Home improvement programs (HIPs) are low- or no-interest loans when counties or other local governments subsidize the interest on home remodeling loans.
Various eligibility rules may apply, but generally, the remodel must take place on an existing structure. These programs do not apply to purchasing a new home or building a new structure – like a deck with an outdoor kitchen - on your property. Gross income limits also apply and HIPs are not available everywhere. Contact your local county tax assessor to see if they are available where you live.
Visit https://www.usa.gov/repairing-home for more helpful links to government remodeling incentives.
Remember, the Internal Revenue Service administers the tax credits. You will have to claim the credit using Form 5695 and to submit it with your tax returns to the IRS. Contact the IRS at www.irs.gov/contact for additional information.
Military veterans have even more programs available, including Home Improvement and Structural Alteration (HISA), Specially Adapted Housing (SAH), and Special Housing Adaptation (SHA) grants. Check the U.S. Department of Veterans Affairs website here for more information and eligibility requirements.
Making your kitchen more energy efficient is another good way to earn incentives. Adding a skylight to reduce the need for artificial light or installing an energy-efficient dishwasher to replace a dated model can not only lower your utility bills, but also drive down the cost of your remodeling project.
Check the Energy Star rebate finder, where you can enter your zip code to find rebates and other offers in your area. You may also want to contact your local utility or state energy office about any available incentives or programs.DREAM IT. DESIGN IT. LIVE IT. | Kitchen & Bath Center