My home was built in 2007 therefore everything inside the house (appliances, heater, etc.), is relatively new; outside of a few energy efficient light bulbs, I never really considered "green-ing" my home...

But then I heard about the tax breaks for certain home improvements, and I decided that perhaps my gas-guzzling hot water heater could use a makeover so I did a little research and want share with you, the 411 on the tax breaks, courtesy of http://www.energystar.gov:

• If you want to install certain windows and doors, insulation, roofs, heating and cooling units, water heaters or biomass stoves (stoves that use biomass fuel to heat a home or heat water), you can receive a tax credit of 30 percent on your 2009 tax return. The cap on that credit is $1,500, and applies to existing homes only.

• For both existing homes and new construction, you can get a tax credit of 30 percent on new geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells. There’s no cap on this credit, and it can be used through 2016.

• These improvements must be ready for use by Dec. 31, 2010, must be for the taxpayer’s principal residence (except for the improvements that are valid through 2016) and $1,500 is the maximum that can be claimed for all products placed in service (except for the improvements that are valid through 2016).

I must admit, as I read about all this, it was very confusing. A lot of acronyms I didn’t know. Terms I’d never heard. Which one of these improvements would be the most effective in reducing my energy costs? Should I do a combination of them to maximize the benefit?

And perhaps most importantly, does the tax credit offset the price tag on all these lovely improvements?

I decided to crunch some numbers to see if I would truly benefit from these “green” upgrades with the tax credits offered.

I started by pricing exterior windows, which are eligible for the 2009 tax credit:

Andersen Craftsman style windows from Home Depot were $136 a piece. I’d need eight for my small bungalow, so that comes out to a base price of $1,088. A tax credit of $326.40 brings the total price down, after the tax credit, to $761.60.

Then I moved to pricing an exterior door:

Again, at Home Depot, a Legacy Door’s 9 Lite Arch Pre-finished Mahogany Door came in at $1,396. With a tax credit of $418.80, the new door would be $977.20.

So assuming I did those two projects without the tax credits, the price would come out to $2,484. And that’s just for equipment—the tax credit doesn’t cover labor. But with the tax credit, the equipment price for the project would be $1,738.80, roughly a savings of $746.

Don’t get me wrong, I’d love to save that kind of money and improve my home at the same time but let’s consider what “going green” really means: conservation of money, resources and time. A paradigm shift in the way you think. Placing more of a focus on cherishing and respecting what you have and utilizing what you already have to the best effect possible.

For me and my particular situation, spending money I don’t have, on improvements I don’t necessarily I need, at this point-in-time, just to get a tax break I’d really like to have—isn’t very “green” at all. In fact, it would be a waste of my time and resources.

I decided I’m going to have to start small by doing things around the house to conserve such as: Unplugging things that don’t need to be plugged in. Taking shorter showers. Buying and cooking only what I need to prevent spoilage. Building a rain barrel to collect water for the outdoor plants.

Given my (and that of many others) current financial situation, these examples are the smartest use of my money and that’s part of going green. Maybe in the future I can afford to shell out thousands on home improvements. When that day comes— solar water heater, here I come.

Other useful links:

http://www.csmonitor.com/2009/0223/p13s01-wmgn.html

http://www.nytimes.com/2009/03/12/garden/12greenhome.html?_r=1&ref=earth

http://www.articlesbase.com/remodeling-articles/extreme-green-home-improvements-619417.html

About the author: Angela Patterson always figured she'd make a living from words, since she never quite mastered basic math. She went from high school newspaper editor to owner of two journalism degrees: a bachelor's from the University of Southern Mississippi, and a Master's from Indiana University.

She now works as a newspaper reporter in Nashville, Tenn. In her spare time, she reads, cooks, plants flowers, and hangs out with her boyfriend and dog.