7 Reasons Your $1500 Home Remodeling Tax Credit Is Slipping Away Fast

Reason #1: Yes, The $1,500 Credit Really Does End December 31, 2010

The $1,500 tax credits program for purchases related to energy efficiency in the home expires on December 31, 2010. This falls under the American Recovery & Reinvestment Act. About.com Guide William Perez tells us that you can "receive a tax credit of 30% of the purchase price of qualified energy-efficient products, up to a maximum tax credit of $1,500." This program does not extend into and past 2011.

Reason #2: Replacement Program Still Not Law and No Assurance It Will Be

H.R. 5019, concerning a program nicknamed Home Star or "Cash For Caulkers," intended to replace this $1,500 tax credit program, has cleared the House but has not cleared Senate or been signed by President Obama. While this bill enjoys bi-partisan support, there is no guarantee that this program will be in place for 2011.

Reason #3: Going in Fall, Contractors Get Busier

As the weather cools, contractors dealing with HVAC, replacement windows, insulation, roofing, doors, etc. find themselves in higher demand. While this is a positive thing for contractors, it's less favorable for homeowners. Homeowners will find it harder to schedule contractors, and if they wait long enough, they may not even be able to schedule the work during 2010.

Reason #4: That's Only 3 1/2 Months Remaining

Time is ticking away. Using September 15, 2010 as a convenient start point, you only have 3 1/2 months until the tax credit program expires.

Reason #5: December Is a Bad Time to Make Exterior Improvements

Let's take December out of the equation. With the cold and icy weather, do you really want your roof, windows, or doors opened up? December is a bad time to open your house's envelope. And if the weather gets bad enough, work shuts down completely.

Not all work covered by the tax credits program must be exterior-based, though. Tankless water heaters, insulation, some HVAC installation, and improved ductwork are a few of the interior projects covered by the program. But most of the covered projects involve opening up the house's envelope.

Reason #6: Ooops. That's Only 2 1/2 Months Remaining

So, that means you effectively have 2 1/2 months to get this work done.

Reason #7: It's Ridiculously Easy To Apply For and Get That $1,500 Tax Credit

Manufacturers practically take you by the hand and give you all the information you need. Why not? It's a great marketing tool. For qualified purchases, they will give you a Manufacturer Certification Statement that should accompany your Forms 1040 and 5695 for filing by April 15, 2011. EnergyStar is a reputable source for tax credits information.