Garage Door Stimulus Plan for 2009

Economic Stimulus Plan Signed in 2009

In Colorado, President Obama signed the massive economic stimulus plan into law making the $8,000 home buyer tax credit official.

The American Recovery and Reinvestment Act of 2009 is a $787 billion stimulus package meant to save or create as many as 3.5 million jobs. The package allocates money for tax relief, state and local fiscal relief, infrastructure and science, protecting the vulnerable, health care, education and training, energy and other things.

This stimulus bill will help lead our nation towards debt levels not seen since the darkest days of World War II and represents the largest federal stimulus package in our nation’s history.

The final plan set aside stimulus money at the cost of $2 billion – $8 billion for first-time home buyers as well as incentives for home owners that make energy saving improvements to their existing home.  All the home builders and housing professionals around the country wanted a $15,ooo home home buyer tax credit, of course, and that did not happen as we can see but there are several very nice incentives for home buyers that are included in this plan.

$8,000 Tax Credit For Home Buyers

The $8,000 tax credit for first-time home buyers should entice some first-time home buyers to “jump-in” and buy a home, but it may prove to do little in increasing overall demand as first-time home buyers represent a small percentage of the entire market. Only time will tell if the tax credit is effective.

  • Available only to first-time home buyers
  • The tax credit is not a loan and does not require repayment*

    • *If the home is sold within 3-years, the $8,000 tax credit must be re-paid

  • The tax credit reduces the home buyer’s tax liability; if the buyer’s liability is less than $8,000, the remaining credit will be issued as a check
  • Home purchase must be for a primary residence
  • The credit is available on home purchases between January 1, 2009 and December 1, 2009
  • If you are single and make $75,000 or more, or are married and make $150,000 or more, you do not qualify for the tax credit
  • The credit is not eligible if the seller is a relative of the buyer 

Home Energy Credit

Tax Incentives for Improving Existing Residential Real Estate

  • Homeowners can recoup up to 30% of the cost of installing energy saving features in their home
  • The credit is valid on up to $1,500 of improvements
  • Over $4 billion was allocated for the Home Energy Credit
  • Examples of improvements: Energy Efficient Windows and Doors, Air Conditioning, Furnaces, Water Heaters

Reduce Energy Costs and get up to a $1500 Tax Credit from the 2009 Stimulus Package with a new Garage Door

Based on the American Recovery and Reinvestment Act of 2009, you can now take advantage of the Federal tax credit for Garage Doors. Tax credits are available for up to 30% of the cost, up to $1500, for existing homes. See www.energystar.gov for more details.

So basically there is a section in the economic stimulus plan that gives incentives to any homeowner who wants to renovate or improve his or her garage.  You will be able to deduct as must as $1500 off any parts, labor, or accessories.  Seems like a good year to start working on your garage if you have been thinking about it for a while.