Remodeling Trend Skyrockets Thanks to Tax Credits

From on December 07, 2010 in Remodeling News

This isn’t the first time you’ve read that 2010 will go down in history as one of the worst years for real estate. And, in fact, new home construction has dropped every year for the last six years. Which means that, on the flip side, remodeling projects have skyrocketed in popularity as homeowners are working with what they have.

remodel trend tax credit

Remodeling professionals like Harlan Syring, a mid-sized general contractor in Roscoe, IL, says that this is one of their better years. While renovation jobs are smaller than in the past—bathrooms, basements, repairs, and the like—contractors have seen a rise in renovation projects overall.

Government incentives such as tax credits have also motivated homeowners. Greg Lee, an HVAC contractor, said that the number of energy-efficient heating and air units his company has installed this year is up more than 20% from last year.

With tax credits covering up to $1,500 of renovation costs for such improvements as new windows and doors, insulated roofs, water heaters, and wall and ceiling insulation, homeowners have been scrambling to get their projects completed by the Dec. 30 deadline.

“I know the tax credits are a pretty big reason for the increase,” Lee says. “If you can get a Cadillac at the price of a Chevy, you’d do it.”

If you’re on the fence about a project, you have to act fast to get your tax credit. Book a job by the 30th of December, and you’ll then have another month to mail in your application for the rebate.

Like the old saying goes, when the economy gives you lemons, make lemonade.

Photo Credit: Dru Bloomfield via Flickr CC