I have had a chance to digest some of the stimulus money that is out there as it pertains to your home, and the more I read, the more I realize that you should not be talking to a builder or architect but rather your accountant.

I am actually half kidding. The basics: The credit is for products “only” that apply, and there is a 30 percent kicker on your taxes, up to $1,500 maximum. That number is good for high-efficiency furnaces, water heaters, insulation, windows and doors, even some appliances. Now, in my last post, I wrote about the average cost of replacing all the windows in your entire home, which would be around $20,000-$30,000. The maximum tax credit on that number is $1,500, but you can stretch that money out.

Here’s how: The windows that qualify need to be rated to a certain standard — a 0.30 U factor and 0.30 Solar Heat Gain Coefficient (SHG). But you do not need that on every window on your home. So depending on how your home is situated you may choose to put these higher-efficiency windows on a side that gets more sun or wind. Areas of your home that do not get blasted with harsh weather do not need the added upgrade and cost.

Then even with all that you still need to consult an accountant to make sure you qualify. Tax laws can be confusing. The fact is, new windows will lower your energy bills and add value to your home. And now you can even get a tax credit.

[Editor's note: Marvin.com has a page of information and resources about the $1,500 energy-efficiency tax credit here.]

Photo courtesy of RogueSun Media on Flickr

In my last two postings, we talked about the architect and the builder and how important it is to get that combination right when starting your remodel. But I suppose the biggest issue is, how are you going to pay for it?

Creating a budget and planning for contingencies is part of any business proposition, and remember: This is business at this point. Now, if you are flush with cash, then return to other parts of the Marvin site to see all they have to offer. But for most of us, planning the funding part of the project is critical.

Even once you have a final price from your builder or contractor, there will be surprises. There will be opportunities to go a little further to do it right, and that costs money. Make sure any changes are spelled out and the cost increases are agreed to in advance.

Interestingly enough, during these economic times, you are going to get a pretty good deal no matter what you are planning to remodel or build. Lumber prices are down, manufacturers and sharpening their pencils, and contractors are willing to work on thinner margins. If your credit is good, there is truly an abundance of money available at low rates. But don’t feel like you have to do it all in one shot. If you want to improve your home you may want to do it in phases.

Let’s take windows for instance. The average home has between 20-25 windows. If you were going to replace those in their entirety, you could spend between $17,000-$30,000, depending on the windows that you chose. To hold onto more of your cash, consider only doing half of the project this year and then the other half a year or two down the road. The fact is, in five years you will have a home that has all new windows, and the ones you put in first are worth no less.

The same is true about bathrooms, kitchens or a room addition. While there is a lot of fun in gutting and remodeling an entire home, the fact is the cost can be high. Now, there is an emotional side to phasing the work. If the thought of putting up with a mess for the next five years sounds unbearable then go big or go home. It’s really up to you.

Photo courtesy of Tall Chris on Flickr