Todd Stewart

Property Zoning Laws for a Workshop or Studio. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Check local zoning laws, ordinances, building codes, and covenants before adding a workshop or studio to your property.

Your separate structure will likely fall under residential zoning laws, not business, if it's meant for just you, a computer, and the occasional client dropping by. Image: www.DecoratedShed.com

Property Zoning Laws for a Workshop or Studio. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

It's not much fun being stuck in a windowless basement or garage to pursue your project passions. Wouldn't it be sweet to have a spacious studio or workshop, fully equipped and with windows in all the right places, just steps away from your house? For many homeowners it's a dream that can be realized, if local zoning laws, ordinances, and building codes permit. Here's what you need to know if you want to add a hobby studio or workshop to your property.

Typical zoning ordinances

Zoning ordinances vary by locale, but in general they exist to keep your new structure from adversely affecting quality of life and real estate values in your neighborhood. Zoning ordinances affecting a backyard structure boil down to these essentials:

• Setbacks are the required buffers (typically about 12 feet) between your structure and your neighbors' lot lines. They also specify at least 20 feet of front yard and 25 feet of backyard.

• Lot coverage (sometimes referred to as Lot Coverage Ratio or LCR) is the allowable percentage of your lot occupied by structures and paving. Most municipalities want at least half the lot to be open space. Larger lots face more severe restrictions to avoid the look of a high-density compound. In Arlington, Va., for example, a half-acre lot is restricted to an LCR of only 33%.

• Easements protect access pathways for utilities, but they may also include public access to a beach or a neighbor's right to share your driveway.

Wanda Edwards, a practicing structural engineer and Director of Building Code Development for the Institute for Business & Home Safety, recommends tackling potential zoning problems early. "Before you begin with any design, sit down with the local zoning official," she advises. "Discuss what you are going to do and be sure that what you are planning will not violate any zoning ordinances."

Codes and restrictions

Building codes that govern the construction of new homes and remodeling projects apply to backyard structures as well. The codes ensure that your building won't collapse under snow load, sink into the ground because of an inadequate footing, or burst into flame due to an electrical fault.

"Their purpose is to protect the health, safety, and welfare of the public," says Edwards.

Codes vary according to locale, mainly because regional differences (low temperatures, hurricanes, earthquakes) put different demands on a building. Codes also reflect local preferences for certain types of materials. For example, some areas allow flexible plastic piping for water lines, some insist on copper pipe.

Other types restrictions may affect placing a separate studio or workshop on your property. "It's not just zoning and codes that you need to take into consideration," Edwards points out. "Subdivisions or neighborhoods might have restricted covenants as well."

Also known as Deed Restrictions, these rules will have been filed with your deed. They can even stretch to aesthetic concerns. "A lot of times there is an architectural board," notes Edwards. "They want to see what it's going to look like." For example, the restrictions may dictate the type and color of materials, such as siding and roofing.

Property Zoning Laws for a Workshop or Studio. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Obtaining a building permit (and what happens if you don't)

Check with your city or county building department for information about obtaining a permit for your studio or workshop. Often, they will have essential information on their web site, along with downloadable application forms.

Permit costs vary. Some begin with a modest fee of $50 or so for the first $1,000 of valuation, and then an additional $7 per $1,000 of valuation. Others are based on square footage. Figured either way, the fee for a 400 sq. ft. structure costing $33,000 to construct averages about $275.

If your structure requires something unusual, such as foundation piers to cope with a steep slope, you may need your plans reviewed and approved by a structural engineer before you can obtain a permit. Expect to pay $300 to $500 for the services of a structural engineer.

After obtaining a permit, your project will be reviewed on-site by a building inspector. The inspector checks critical items, such as the foundation, framing, wiring, and plumbing, to make sure they comply with building codes. In addition, many municipalities check insulation and energy conservation measures. When signing off on completed work, the inspector will list items to be corrected before the next inspection.

Despite the fairly modest fee, some homeowners skip taking out a permit. The risk is hardly worth it. If you later put your house on the market and the prospective owner spots something that's not to code, you may be required to make a repair that will cost much more than if the job had been done correctly from the start.

If the wiring and plumbing were not inspected, you may have to provide a clear look by pulling out obstructing drywall. Or worse. "An inspector will try to work with you, but he has the authority to make you tear down the structure," warns Edwards.

Property assessments, taxes, and insurance

When you take out a building permit, your tax assessor is cued to your property's increased value. Typically, the tax increase is a set amount multiplied by the square footage of your new studio or workshop, allowing you to estimate your tax increase in advance.

Your building as a place of business

If your business is simply you, a computer, and an occasional client dropping by, your separate structure will likely fall under residential-not business-zoning laws. However, if you have several employees and a stream of customers, you may run afoul of zoning laws that restrict commerce in residential areas. Your option is to apply for a variance that grants you exemption from the laws based on your circumstances.

Should zoning laws permit you to use your new studio or workshop as a place of business, brace yourself for some demanding code requirements. Now that you're inviting the public in, expect to provide things like more than one exit, a fire lane, restroom facilities, and adequate parking.

Potential payback

Although you may be building the ceramics studio or furniture-making shop of your dreams, it probably won't add appreciable value to your property.

"We struggle with those outbuildings from an appraisal standpoint," says Bryan Flaherty, an appraiser in Missoula, Mont. "The classic example is somebody who likes to rebuild cars and they build a separate shop on their property in a residential zone. They'll end up investing $25,000 to $50,000 in that shop building."

They typically won't get their investment back, says Flaherty. "People buy the house first as a place to live. The incidental buildings are secondary. Normally they'll contribute less than the cost value." By: Dave Toht

Property Zoning Laws for a Workshop or Studio. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Outdoor Appliance Buying Guide: Specialty Items. New Construction Homes for Sale in Burnt Hills NY. Tood Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Specialty appliances for outdoor kitchens are hot items, but be prepared to spend thousands of dollars for the added convenience.

Outdoor pizza ovens, which are gaining in popularity, typically cost between $700 and $6,000. Image: Kalamazoo Outdoor Gourmet

Outdoor Appliance Buying Guide: Specialty Items. New Construction Homes for Sale in Burnt Hills NY. Tood Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

"There is a trend away from simple barbecue islands and to elaborate outdoor kitchens," explains Mitch Slater, president of Danver, a manufacturer of outdoor kitchen cabinetry. "Homeowners want to be able to do outdoors all the food preparation that they normally have to do indoors." For that reason, appliances like ice makers, pizza ovens, and beer fridges are all finding their way to the backyard. However, you should carefully consider your needs and lifestyle to ensure that you'll get your money's worth of use and convenience from specialty appliances that may cost thousands of dollars.

Note that with outdoor appliances, you will likely encounter the following additional costs for installation:

• $125 to $300 to add an outdoor electrical outlet.

• $400 to $800 to run a cold water supply line, or a combination hot-and-cold water supply.

• $1,500 to $3,000 to install hot-and-cold water supply lines plus a drain system.

Ice makers

Cost range: $180-$2,000
Likely additional costs: 110 outlet, water line hook-up, cover
Average life span: 3-10 years

With a built-in ice maker, there will be no more trips to the corner store for 25-pound bags of ice. These sleek, stainless steel-clad units blend seamlessly with outdoor kitchen cabinetry and produce about 25 pounds of ice per day.

Because these models get tied into the home's water line, they require a plumber for installation. They also require an electrical outlet. Expect to pay $900 to $2,000 for an outdoor-approved appliance with a warranty that covers parts and labor for one year and the compressor for five. Homeowners in cold climes must shut off the water supply and drain the lines before winter to prevent the freezing and bursting of pipes.

Portable or countertop ice makers are less expensive-ranging from $180 to $300-and don't require a connection to a water line. An interior reservoir is filled with tap or bottled water, allowing the units to produce about 35 cubes per hour. Refilling the tank may be necessary for large amounts of ice, and the appliance requires an electrical outlet.

Because most less-expensive machines are not UL rated for outdoor use, they should not be left out in the weather. Expect shorter warranties (90-day to one year) as well.

Pizza ovens

Cost range: $700-$6,000 and up
Likely additional costs: gas line hook-up, sturdy base, firewood
Average life span: 5-20 years

"Gas or wood-fired pizza ovens are getting very popular," explains Danver's Mitch Slater. Attracted by the romance of a Tuscan-style pizza-making experience, more and more homeowners are installing these hefty gourmet appliances. Constructed of masonry or thick steel, these units all feature a stone hearth floor and gently sloping domed roof.

Wood-fired stoves, the purist's choice, come in two basic models: those heated from a fire built inside the firebox and those heated from a separate firebox below the oven. Both require a sizeable time commitment to reach desired temps, not to mention a steady supply of hardwood. A word of caution, notes Slater: "These units are heavy, 500 pounds or more, and require a sturdy base that can be very expensive to build."

Countertop pizza ovens are fueled by propane or a home's natural gas supply and can reach cooking temps in as little as 30 minutes. Prices range from $700 for a freestanding wood-fired oven to $6,000 for elaborate wood- or gas-fired units. Expect warranties ranging from five years to limited lifetime.

Beer dispenser

Cost range: $400 to $1,500
Likely additional costs: 110 outlet, CO2, cover
Average life span: 5-10 years

For serious entertainers, there may be no greater luxury than an endless supply of ice-cold draft beer. Often referred to as kegerators, beer dispensers simultaneously chill and dispense beer from a keg.

Though models are available for as little as $400, the less-costly versions typically are not designed for outdoor use and must be protected from the weather. Expect to pay between $900 and $1,500 for an outdoor-approved model with a warranty that covers parts and labor for one year and the compressor for five.

Before investing in one of these appliances, it's wise to know that kegs are heavy and not readily available in all areas. A full-size keg holds approximately 160 pints of beer, or roughly seven cases. And once the keg is tapped, the beer will remain fresh only for about three weeks under consistent refrigeration.

In addition to an electrical source, kegerators also require a CO2 supply. Each five-pound cylinder of gas will dispense about six kegs of beer before it needs refilling from a local gas supplier ($10).

Outdoor Appliance Buying Guide: Specialty Items. New Construction Homes for Sale in Burnt Hills NY. Tood Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Patio heaters

Cost range: $150-$800
Likely additional costs: 110 outlet, natural gas hook-up or propane tank, cover for freestanding units
Average life span: 5-10 years

Patio heaters don't cook the food or chill the beer, but they do increase the amount of time a family gets to enjoy the outdoors. There are three main categories of outdoor heaters, each with its own benefits and drawbacks. None, however, will transform an arctic evening into a tropical oasis: most work best when the thermometer reads between 50 and 60 degrees. Patio heaters add approximately 10 degrees to the ambient outdoor temperature.

Tabletop models stand just 3 feet tall, making them easy to move from site to site. Putting out about 10,000 BTUs, these units heat a 10-foot-diameter circle, or about 80 square feet. They will run approximately two hours on a one-pound propane tank. At about $5 per tank, the operating cost is $2.50 per hour. Prices for tabletop propane heaters range from $150 to $250, including a one-year manufacturer's warranty.

Freestanding-or post-style-heaters stand about 8 feet tall and heat an area more than four times the size of tabletop varieties. Producing over 40,000 BTUs, these models warm a 20-foot-diameter circle, or 314 square feet.

Fuel choices for post-style heaters include propane or natural gas. Using natural gas eliminates the need to refill propane tanks and costs less than half to run, but requires a gas line hook-up and a stationary location. Post-style heaters range from $200 to $500 and come with a one-year manufacturer's warranty.

Electric heaters simply plug into a standard outlet, making them the greenest and cheapest options when it comes to operating costs. Powerful bulbs emit steady infrared heat that is unaffected by wind like models that utilize flames.

Units costing $300 will heat 75 to 100 square feet and cost as little as $0.15 per hour to run. Models that heat 300 square feet cost upwards of $800 and consume about three times the energy.

Some electric heaters are rated for outdoor use and may be exposed to the elements, as long as the outlet itself is weatherproof. Some electric heating units are designated for outside use but must be covered, meaning they can be used only under a roof structure, awning, or eave, limiting their applications. Also, heating elements last only two to four years depending on use and cost $100 to replace. One-year manufacturer's warranties are standard. By: Douglas Trattner

Outdoor Appliance Buying Guide: Specialty Items. New Construction Homes for Sale in Burnt Hills NY. Tood Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Saving Electricity: Reduce Standby Power Consumption. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

It doesn't take much effort to reduce standby power consumption; and you could save the equivalent of a few tanks of gas a year.

You might save the equivalent of three or four tanks of gas each year by reducing your home's standby election consumption. Image: Joseph Devenney/Photographer's Choice RF/Getty Images

Saving Electricity: Reduce Standby Power Consumption. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

You're already paying a bundle every month to your cable and Internet providers. Why fork over even more money to the power company for the standby power consumption that TVs, computers, and cell phones eat when they're plugged in but not in use?

Standby or "vampire" consumption accounts for about $100 of your electricity bill annually, says Energy Star. But you can save at least some of that money by using a few simple tactics, if you're willing to form new habits and do a little investigative work.

Buy a portable energy meter

A great first step: Identify the biggest energy vampires in your house. A portable energy meter-$22-$100 online (some super-precise meters can cost big bucks) from such retailers as Amazon.com-can help you pinpoint hot spots and pay for itself in less than a year. Some libraries may even loan them. These devices measure voltage, electricity cost, and electric consumption. They can tell you how much it costs to operate everything from your refrigerator to your computer-both when using standby power and when operating at full blast. They'll even calculate the expected payback time when you replace older equipment with more energy-efficient models.

Saving Electricity: Reduce Standby Power Consumption. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Madison Gas & Electric Co., a public utility in Madison, Wis., followed a three-member family in Madison, who used a monitor to track 29 electrically powered devices in their home. The family calculated that vampire consumption cost them at least $134.97 annually. The single biggest culprit was a high-definition cable TV box, sucking up 20.7% of their standby electricity.

Other devices that the family found were heavy standby energy users:

Standard cable TV box, 11.8%

Computer, 10.5%

VCR, 8.9% for one and 4% for the other

Stereo subwoofer, 6.6%

Make it easy to manage standby consumption

Once you know your energy culprits, start unplugging items routinely. Make that easier by plugging devices close to each other- such as computers, monitors, printers, and desk lamps-into a power strip or surge protector.

Homeowners Gary Kenigsberg and Marsha Koschik of Pittsburgh put their TV, VCR, DVD, stereo system, two computers, and all of their peripherals-such as a scanner and an electric microscope-on surge protectors. When they're not using the devices, they turn off the strips. More than six months after they began using the power strips, Gary says his monthly electric bill payments have dropped into the $40s; before they had been in the $60s and $70s.

You can also invest in smart-power strips-about $20 to $40 through online retailers. When you power down a primary device, such as a home computer, the strip automatically shuts down related peripherals. The strips include "always on" outlets for devices that you don't want to turn off completely, like TiVo, so you don't miss your favorite show. And if DVRs/TiVos and satellite or cable boxes stay on, you won't wait for them to reboot. Depending on how many devices you attach, you could recoup your cost in a few months.

Like most people, you probably leave your cell phone charging over night. But most charge in about 90 minutes, amounting to about seven hours of lost energy. You might not feel guilty if you know that charging each unit longer than necessary costs only a few cents per year. But if blowing any money makes you cringe, remember to unplug them or charge them in your car's cigarette lighter.

Bottom line: You won't pay for that vacation to Cancun by reducing standby consumption, but you might save the equivalent of three or four tanks of gas each year. And you'll know you're doing your part to help the environment. Without vampire electricity, the U.S. could shutter 17 power plants and eliminate 27 tons of carbon dioxide in the air, according to Lawrence Berekely.

Alternatives to saving on standby energy

If battling standby consumption seems like more trouble than it's worth, there are alternatives for saving energy.

• Opt for Energy Star appliances, if you're in the market to buy new.They're 10% to 50% more efficient than standard appliances.

• Wash clothes in cold rather than hot water.

• Buy compact fluorescents rather than traditional incandescent bulbs.

• Use rechargeable batteries.

• Better use and maintain your kitchen appliances.

• Take charge of your home office power consumption

By: John Rebchook

Saving Electricity: Reduce Standby Power Consumption. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Understanding Energy Ratings for Windows and Doors. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Qualifying for the $1,500 federal tax credit on new windows and doors depends on two measurements, U-factor and Solar Heat Gain Coefficient.

The National Fenestration Rating Council and Energy Star can tell you how energy efficient windows and doors are. Image: Andersen

Understanding Energy Ratings for Windows and Doors. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Just because windows or doors are Energy Star-labeled doesn't mean they're eligible for the maximum $1,500 federal tax credit. And with costs running about $500-$1,000 per window including labor, it's wise to know something about the scientific lingo and numbers on the product labels you're likely to encounter. Here's your pro-level label-decoding guide so you can be sure you're buying qualified products.

Which labels matter?

The two labels you should look for: The U.S. Department of Energy's blue-and-yellow Energy Star label, which specifies the climate zones the product is certified for, and the white National Fenestration Rating Council label. Nonprofit NFRC is the industry-recognized certifying body for windows and doors. It reports raw numbers only; Energy Star tells you whether those numbers constitute superior performance, putting its seal of approval on those products that meet its standards.

To confuse matters, DOE has issued a blue label that manufacturers can use to signify that a product qualifies for the tax credit. But DOE doesn't require that manufacturers include it.

Understanding Energy Ratings for Windows and Doors. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

What you need to get the tax credit

For windows or doors purchased after June 1, 2009, to qualify for the credit, two NFRC-supplied measurements must each be equal to or less than 0.3, regardless of climate: U-factor and solar heat gain coefficient (SHGC). You must also have the manufacturer's signed statement that the product complies with IRS requirements. This either comes with purchase or can be downloaded from the manufacturer's website.

Don't be swayed by ratings the manufacturer may post on its own label. A window or door's frame and other components (weather stripping, sidelights, transoms) can significantly affect its energy efficiency, so NFRC measures based on the entire unit, not just the window glass or door slab alone. Manufacturers, on the other hand, sometimes report values that don't take the entire unit into account, according to Energy Star.

A guide to measurements

The NFRC label typically lists five measurements, including the tax credit-critical U-factor and SHGC. The other three are somewhat less important to energy performance, according to Energy Star, but can help you judge how well a window or door will perform in a particular application-for example, whether it'll let in enough light.

Where you live affects which measurements are most important, but the tax credit requirements are uniform across the country. There are four Energy Star climate zones, differentiated by whether heating, cooling, or a mix of the two is most critical to energy performance.

1. U-Factor

Range: 0.20 to 1.20

The lower the number, the better an insulator the window or door is.

Tax credit qualification requirement: 0.3 or less

Efficient Windows Collaborative climate recommendations:

Northern: 0.35 or less

North Central or South Central: 0.4 or less

Southern: 0.60 or less

A low U-factor means that less heat escapes in the winter, which makes it particularly important in cold northern climates, according to the Collaborative, a coalition of government agencies, research organizations, and manufacturers that promote efficient window technology.

2. Solar heat gain coefficient (SHGC)

Range: 0 to 1

The lower the number, the less solar radiation-and heat-the window or door allows inside.

Tax credit qualification requirement: 0.3 or less

EWC climate recommendations:

Northern: The highest you can find (paired with a low U-factor) if cooling isn't a significant concern; up to 0.55 if cooling is a significant concern.

North Central: 0.4 or less for climates with significant air conditioning; up to 0.55 for climates with moderate air conditioning.

South Central or Southern: 0.4 or less.

SHGC refers to the solar radiation a window or door allows inside. Seek the lowest possible SHGC rating in warm climates to minimize the use of air conditioning. Look for a slightly higher number in cooler climates so that the sun can help heat your home in winter, but be sure to balance SHGC with an efficient U-factor for your area.

3. Visible transmittance

Range: 0 to 1

Lower number means the room will be dimmer

a higher number means the room will be brighter.

Tax credit qualification requirement: none

This number applies to windows or doors with windows only. Visible transmittance is the amount of light a window allows to pass through. With older window glazing techniques, VT and solar heat gain were basically the same; the brighter a room, the hotter it got. But new technologies allow windows to let in lots of light while the room stays cool.

Consult VT numbers if you're looking to reduce glare in a room or fill it with natural light, but be warned that a very low VT may mean you have to use artificial lighting even during the day.

4. Air leakage

Range: N/A, but .0.3 is standard building code

The lower the number, the more airtight the window or door.

Tax qualification requirement: none

This number, expressed in cubic feet per minute per square foot of window/door area, represents the amount of air that the window or door's frame allows to pass through. Energy Star standards don't consider air leakage because it's difficult to measure accurately and can change over time as frame materials expand, contract, or warp in place, according to the EWC. Still, this measurement can help you compare similar products, especially if they'll be buffeted by the elements.

5. Condensation resistance

Range: 1 to 100

The lower the number, the more condensation the window or door allows to build up.

Tax credit qualification requirement: none

Condensation resistance is a measure of how much moisture a window or door allows to build up on the surface (which can drip onto wood and cause mold or discoloration) or between glazing layers (which can't be clean and blocks your view). Energy Star-rated windows tend to resist condensation well, so this number won't likely affect your purchase decision.

Learning the lingo can be worth it. A window replacement is one of the best home remodeling projects in terms of investment return. You can recoup about 78% of the project cost ($10,500-$13,600), according to Remodeling Magazine's annual Cost vs. Value Report.

Understanding Energy Ratings for Windows and Doors. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Claim Your Residential Energy Tax Credits. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Earn a residential energy tax credit and lower your utility bills at the same time when you improve the energy efficiency of your home.

Do you qualify?

- You may qualify for a tax credit if:

• You make an eligible energy upgrade in 2009 or 2010.
• The project meets IRS energy-efficiency standards.
• Your credits won't exceed your total tax liability.

Energy-efficient improvements to your home, such as adding insulation, can make you eligible for a $1,500 tax credit. Image: Gary Ombler/Getty Images

Claim Your Residential Energy Tax Credits. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Uncle Sam is encouraging homeowners to become more green by offering residential energy tax credits. Eligible energy-efficiency home improvements, such as adding insulation, can earn a tax credit of up to $1,500. More ambitious projects, such as installing solar panels, can net a credit worth 30% of the total cost.

Improvements must meet IRS energy-efficiency standards to qualify for a residential energy tax credit. Don't assume an Energy Star label is enough. Save receipts and manufacturers' statements certifying the tax credit-worthiness of the products. The IRS could ask for them.

Claim Your Residential Energy Tax Credits. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.

Tax credit capped at $1,500

Replace aging windows, HVAC systems, and non-solar water heaters, install efficient biomass stoves, add insulation, or fix a worn roof, and you might collect a tidy credit come tax time. To encourage greater energy efficiency, homeowners can recoup 30% of the cost, up to $1,500, for making any of these qualifying upgrades during 2009 or 2010. Claim the credit for the year in which you complete the project.

The improvements must be made to your existing primary residence to be eligible. You can include the labor costs for HVAC, stove, and water heater installations; only the cost of materials counts for insulation, roofs, and windows (as well as exterior doors and skylights). Ask your contractor for a receipt that itemizes materials and labor. The IRS refers to the tax relief you can get for these projects collectively as the Nonbusiness Energy Property Credit.

Keep in mind that the $1,500 cap applies to all of the projects combined for both years. You can't claim a $1,500 credit for new windows in 2009 and a separate $1,500 credit for a new furnace in 2010. A $5,000 project would max out the credit.

Uncapped energy tax credit

There's no cap on tax credits for a handful of residential projects that involve alternative energy sources including solar, geothermal, and wind. That's good news considering costs can run into five figures for photovoltaic systems (for electricity), solar water heaters, geothermal heat pumps, and small wind turbines. Fuel cells qualify too, though they're subject to slightly different criteria.

This tax incentive is called the Residential Energy Efficient Property Credit by the IRS. Homeowners can earn it anytime between 2009 and 2016 for the tax year that one of these systems is placed into service. The tax credit, equal to 30% of the project cost, applies to second homes as well as primary residences. New homes are eligible too. A rental property generally is excluded unless it's a second home that's only rented out part of the year.

You can use the uncapped tax credit even if you're using the capped tax credit. In fact, you can claim separate uncapped credits for a wind turbine, a geothermal heat pump, and a solar water heater. Use IRS Form 5695, which has separate pages for capped and uncapped tax credits.

How tax credits work

A tax credit is usually more valuable than a tax deduction because the credit lowers your tax bill-or increases your refund-dollar for dollar. Think of it this way: A $1,500 deduction will save $363 on taxes owed for a married couple filing jointly with an adjusted gross income of $100,000. That same couple would save the full $1,500 with a $1,500 tax credit. Married filing separately taxpayers may be able to take separate $1,500 tax credits.

Residential energy tax credits do have limits. The IRS considers the credits "non-refundable," which means you can't claim more in credits than you paid out in federal income taxes. You may be able to carry forward some of your surplus uncapped tax credits to future years.

While Form 5695 shouldn't take more than an hour or two to complete, it's a good idea to consult a tax adviser. Credits are gold, so you don't want to risk missing one. H&R Block's average fee to prepare a tax return is $187, but cost varies considerably depending on complexity. By: Mike DeSenne

Claim Your Residential Energy Tax Credits. New Construction Homes for Sale in Burnt Hills NY. Todd Stewart of Stewart Construction Custom Home Builder in Burnt Hills NY.