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INSURANCE DISCOUNTS FOR A NEW ROOF:
There is no better time to "shop" for homeowners coverage than when you are contemplating replacing your existing roof. For most insurance carriers, the roof on your home accounts for over 50% of the premium costs.
Replace your roof and the carrier's liabilities go down dramatically, so they should share this savings with you! Many will share this savings with you, but make sure your carrier offers a "new roof discount."
FORTIFIED ROOF:
Have you heard of this program? If not, please review the information on the "Smart Home America" site to get a basic understanding of what is involved and how it can be of benefit.
Re-roofing your home to the Fortified Roof level will require an investment of roughly 10% above the basic costs of re-roofing in our area.
What is the potential savings? Depending upon your preferred insurance carrier, your annual discounts should fall within a range of 20-35% (of the wind-related portion of your homeowner's coverage).
ENERGY STAR TAX CREDITS:
This program has been around for years and can get a bit confusing as to the EXACT savings you can expect from investing in EnergyStar products for your home.
- DEDUCTIONS FOR RETROFIT:
As only our elected officials can do - the tax deductions available to you are buried in the tax codes, and seemingly written in a foreign language. Please seek professional tax advice before taking this deduction on your tax returns.
My best guess - you are allowed to take a deduction equal to 50% of the costs to retrofit your home (against specific weather-related events), or $3,000, whichever is less.
Please read the tax codes below, and do let me know if you interpret this another way.
Replace your roof and the carrier's liabilities go down dramatically, so they should share this savings with you! Many will share this savings with you, but make sure your carrier offers a "new roof discount."
FORTIFIED ROOF:
Have you heard of this program? If not, please review the information on the "Smart Home America" site to get a basic understanding of what is involved and how it can be of benefit.
Re-roofing your home to the Fortified Roof level will require an investment of roughly 10% above the basic costs of re-roofing in our area.
What is the potential savings? Depending upon your preferred insurance carrier, your annual discounts should fall within a range of 20-35% (of the wind-related portion of your homeowner's coverage).
This program has been around for years and can get a bit confusing as to the EXACT savings you can expect from investing in EnergyStar products for your home.
If you have ever taken an EnergyStar tax credit for upgrades to your home, i.e., replacement windows, HVAC systems, etc., you might not qualify for any additional tax credits. The current tax savings potential of $500 dates back to include all enhancements since 2005.
The STATE OF ALABAMA
The STATE OF ALABAMA
As only our elected officials can do - the tax deductions available to you are buried in the tax codes, and seemingly written in a foreign language. Please seek professional tax advice before taking this deduction on your tax returns.
My best guess - you are allowed to take a deduction equal to 50% of the costs to retrofit your home (against specific weather-related events), or $3,000, whichever is less.
Please read the tax codes below, and do let me know if you interpret this another way.
Section 40-18-15.4
Deductions for certain retrofitting or upgrades to homes - Residence in Alabama Insurance Underwriting Association zone.
(a) An individual taxpayer, whose legal residence is located in an Alabama Insurance Underwriting Association zone pursuant to Section 27-1-17, shall be allowed a deduction from taxable income, regardless of whether the taxpayer itemizes his or her income tax deductions, in calculating the income tax imposed pursuant to Section 40-18-5, for certain retrofit costs as described in this section. The deduction shall be allowed for the costs incurred to retrofit, as specified in Section 27-31D-2, a structure qualifying as the legal residence of a taxpayer to make the residence more resistant to loss due to a hurricane, tornado, or other catastrophic windstorm event.
(b) In order to qualify for the state income tax deduction allowed pursuant to this section, the costs may not include ordinary repair or replacement of existing items, and shall be associated with those fortification measures defined in Chapter 31D of Title 27, designed to increase the resistance of the residence to hurricane, tornado, or catastrophic windstorm event damage. A taxpayer claiming the deduction shall receive certification, as prescribed by Chapter 31D of Title 27, that the fortification measures were implemented and costs were incurred, and shall provide the certification upon request of the Department of Revenue to prove the taxpayer is entitled to the deduction.
(c) The aggregate tax deduction allowed pursuant to this section for all taxable years beginning with the 2011 tax year shall not exceed the lesser of the following:
(1) Fifty percent of the retrofitting cost incurred.
(2) Three thousand dollars ($3,000).
(d) The cost of items that otherwise qualify for the deduction that are purchased with any available grant funds are not eligible for this deduction if the grants are not included in the income of the taxpayer.
(e) Costs incurred by the taxpayer and used as the basis for a deduction under Section 40-18-15.5 may not be used as the basis for a deduction under this section. The deductions under Section 40-18-15.5 and this section combined may not exceed three thousand dollars ($3,000).
(Act 2011-644, p. 1640, §1.)
