Tax credits and other money saving programs

Big incentives for Bloomington homeowners

Related: Learn about a 35% rebate, up to $10,000, for home energy efficiency improvements...

Tax credits for improving your home's efficiency

The U.S. Department of Energy's Energy Star website external link contains information on 2011 tax credits available for up to 10% of cost up to $500, or a specific amount from $50 - $300, that can be applied toward your costs of making energy-efficient home improvements.

The credits are available to owners who use the house as their primary residence. There is no income cap.

The energystar.gov website external link says that the following improvements are eligible for a tax credit:

Energy-efficient windows and exterior doors.
Insulation.
Energy-efficient metal or asphalt roofs.
Energy-efficient furnace, air conditioner, heat pump, or boiler.
Energy-efficient water heater.

In addition, the site lists tax credits that are available for up to 30% of the cost of these energy-efficient improvements, through 2016:

Geothermal heat pump.
Solar panels.
Solar water heater.
Small wind energy system.

Bloomington homeowners who make energy efficient improvements to their homes may also be eligible for energy rebates that are issued by local power companies.

Click on any of these links for more information:

Consult your tax planner and review all IRS guidelines before making improvements. The City of Bloomington is not a tax advisor.

Here's a summary of what's available:

Energy tax incentives have been extended into 2011 BUT at lower levels. The levels revert back to those in effect in 2006 and 2007, which were 10% of the cost of the improvement, up to $500, with a $200 max for windows, and several other set maximums. Highlights:
- $500 lifetime limit. If you got over $500 in these tax credits from 2006 - 2010, you are not eligible for anything more.
- 10% up to $500 for insulation, roofs, and doors.
- Windows capped at $200, but qualification now ENERGY STAR
- Furnace and boilers capped at $150, and all furnaces and boilers must meet 95 AFUE
- $50 for advanced main air circulating fan
- $300 for air conditioners, air source heat pumps, water heaters, and biomass stoves
There are extended tax credits for projects such as solar water heaters, geothermal heat pumps and wind energy systems. Homeowners who install these more complex systems are eligible for a tax credit of up to 30% of the cost of labor and materials, with no caps. The extended tax credits for complex systems are available through 2016.
For more information about eligible energy-efficient home improvements, visit:
- Alliance to Save Energy's website.
- Informational page on the Energy Star website.
For information on City electrical, plumbing, mechanical and building permits for this type of home improvement, call the Building and Inspections Division at 952-563-8930. Information about is also available via this Building and Inspections slide show on our website.

Other money-saving programs

Consumer Energy Tax Incentives – What the American Recovery and Reinvestment Act Means to You. Visit the Department of Energy's Consumer Energy Tax Incentives page for more information.

Foreclosed Home Improvement Program (FHIP) – The Bloomington Housing and Redevelopment Authority has funds for loans up to $20,000 for people with newly bought foreclosed homes. Visit the HRA's FHIP page to learn more about the programs eligibility standards and details.

Bloomington’s Housing and Rehabilitation Loan Program – The Bloomington HRA provides home improvement loans to 30-40 low and moderate income homeowners. The maximum loan is $35,000 and do not need to be repaid until recipient sells, transfers title or no longer lives at the home. Visit the HRA's Housing and rehabilitation and neighborhood preservation page for more information.

Bloomington’s Neighborhood Home Improvement Loan Program – Each year the City of Bloomington selects specific target areas for its Community Enhancement Program. Maximum loan is $30,000. Visit the HRA's Housing and rehabilitation and neighborhood preservation page for more information.

Neighborhood Energy Connection – Provides loans through the Community Fix-Up Fund at low interest rates up to $35,000 to help weatherize your house. Visit the Neighborhood Energy Connection's Minnesota Energy Loan page for more information.

Low income options for those that qualify – Amount of assistance depends on weatherization needs. Visit the U.S. Department of Energy's Weatherization Assistance Home Page and follow the steps to apply for assistance.

Stay warm MN – Low income family assistance Homeowners need to meet income eligibility requirements. Once application is approved weatherization work can begin through an approved contractor. Visit the Office of Energy Security's Weatherization Assistance Program page for more information.

Sustainable Resource Center – Once assistance is obtained you have the option to choose the Sustainable Resource Center who serves the entire metro area. They provide basic home energy diagnostics all the way up to whole house weatherization services. Visit the Sustainable Resource Center's website for more information.

Earn rewards for saving energy – Sign up for this free service that measures your energy use, then provides you with customized advice to become more energy-efficient, and rewards you based on the amount of energy you save. Visit the Earth Aid website for more information.

Join the Minnesota Energy Challenge – Discover new ways to save energy and money, and see how you compare with others. Challenge yourself to take more action to save or join a group or team in your city, business, congregation, school, etc., and use the Energy Challenge to track group achievements and savings. Visit the MN Energy Challenge website for more information.