Let’s Talk Energy . . . Savings!

You are probably aware that there is an energy tax credit incentive for home owners built in to the government’s massive Stimulus Bill. Let’s recap this tax credit incentive and examine how this can be a massive opportunity for home improvement retailers.

First, it’s important to understand that this is a tax credit not a tax deduction. There is an important distinction here. A tax deduction means you deduct the prescribed amount from your taxable income before determining your tax liability. A tax credit means you reduce the tax liability you owe by the amount of the tax credit. Thus, if you have a $10,000 tax liability and a $1,000 tax credit, you only owe the IRS $9,000.00. This has huge implications for home improvement retailers.

Another important aspect of this tax credit is that it increases the cap from 10% to 30% for certain home improvement expenditures (energy conservation products.)

Here is a summary of the American Recovery & Reinvestment Act of 2009. The more significant incentives provided under the new law include:

Residential Energy Property Credit – Increased to 30%

The new law increased the Code Sec. 25C residential energy property tax credits from 10 percent to 30 percent, raises the maximum cap to a $1,500 aggregate amount for 2009 and 2010 installations, eliminates the $500 lifetime cap and makes several other modifications. The changes are effective for eligible property placed in service after December 31, 2008 and before January 1, 2011.

Note: Higher energy costs should accelerate the “pay-back” period for qualifying home improvements. The credit was in effect in prior years through 2007, but Congress allowed it to lapse for 2008. Pre-2008 credits are not counted toward the new $1,500 maximum.

Note: Improvements eligible for the Code Sec. 25C credit include insulation materials, exterior windows including skylights, exterior doors, central air conditions, natural gas, propane or oil water heaters or furnaces, hot water boilers, electric heat pump water heaters, certain metal roofs, stoves and advanced mail air circulating fans.

For more detail on these tax credits check out this Energy Star link

Residential Energy Efficient Property Credit

The new law removes the individual dollar caps under the Code Sec. 25D residential energy efficient property credit for solar hot water property, geothermal heat pumps and wind energy property. However, the new law places a $500 credit cap on qualified fuel cell expenditures.

Next time, we’ll answer some of the important questions about this terrific marketing opportunity.

Best regards,
Dave Yoho

Your consultant introduced many thought-provoking, exciting concepts that were implemented and drove our net profit. We look forward to a long and prosperous relationship with Dave Yoho Associates!

Mark Watson, Owner
Exterior Medics

I’ve been a client of Dave Yoho Associates since opening my business six years ago. In that time, their training program and sales methods have helped us build a successful 

Ken Sherman, Owner
Brookstone Windows & Doors

One of the primary takeaways from your most recent visit to our company was that the words, promises, and tone of our call center reps need to speak directly to 

Dave Cerrone, President
Fitch Construction

We are grateful to have Dave Yoho Associates work with our entire team. I firmly believe the improved performance of our event marketing team is directly tied to your coaching 

Scott Barr, Steward
Southwest Exteriors

Dave Yoho Associates provided guidance, advice, best practices, and support to our entire staff. Our company has improved across every level after working with them.

Cris Keeter, Owner
All-States Exteriors

I would like to thank Dave Yoho Associates for their consulting services. For me, the meaning of ‘value’ is getting more than what you paid for, and their services truly 

Aaron Heth, Director of Sales
Freedom-Solar

We found Dave Yoho Associates extremely professional and knowledgeable in evaluating our current business model and recommending specific solutions that will improve our efficiency and profit.

Wasyl Bodnar, President
Ventana Design, Sales, and Manufacturing

Our remodeling business had annual sales of under $9 million when we became contract clients of Dave Yoho Associates. Due to their training and systems, our revenue soared – – 

Vince Nardo, President
Reborn Cabinets

I learned an abundance from your canvassing training. Thank you so much for helping us revise our methodology!

Lynann Everett, Interactive Marketing Manager
RbA of Northeast PA

Dave Yoho Associates are the leaders in business consulting and sales training for the industry. We utilized their services to grow from a small business to averaging over $10 million 

Wendy Patterson, Co-Owner
Patterson Homes & Construction

OUR PARTNERS

Get a FREE 30 Minute Consultation A FREE GIFT
Call Us Now