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Rebates and Financing for Rental Properties

Posted by : Ronald Carter on Mar 21,2016 02:29 PM
Rebates and Financing for Rental Properties

Investors contemplating to design a new rental building or remodeling an existing one should consider investing in enhancing the energy efficiency of their property. That explains why most remodeling contractors in TX and other parts of the US suggest energy efficiency improvements during property renovations. Making a rental property energy efficient not only saves energy and money, but also results in durable and attractive units that attract potential tenants. While investing in sustainable energy systems conserves energy and maximizes your returns, you may also explore other options that help you get energy efficiency tax credits. In this post, we discuss the various perks that investing in energy efficient systems entails for the owners and stakeholders of rental properties.

Tax Credits

Investors who invest in making their rental property energy efficient qualify for tax credits in the subsequent tax year. Every year the IRS renews tax credits for various features and property categories, including residential, commercial, and rental among others. Investors who have invested in energy efficiency building reap generous tax credits benefits if they meet the set standards. Energy Star is a rating system that distinguishes energy efficient products from the usual lot. You can learn more on how to apply for energy efficiency tax credits here. 

A range of energy efficient products included in the tax credit list include:

● Insulation

● Windows and doors

● Water heaters (non-solar)

● Roof (metal and asphalt)

● HVAC units

● Geothermal heat pumps

● Small residential wind turbines

● Solar energy systems

Energy efficient products cost more but the amount of money you save in the long run through lower energy bills is worth the investment. One thing is worth noting is that not all Energy Star certified products qualify for tax credits. Before making an investment, it is important to know whether the product you are investing in qualifies for the tax credit or not.


A rebate is another way to save money on energy efficient products. Rebates work differently from tax credits. Rebates are often in the form of cashback that you get after making a purchase.Though there are no rebates stipulated by the federal government for energy efficient products, many state governments and local authorities offer rebates for various energy efficient product purchases. Some manufacturers offer rebates on their eco-friendly products making energy efficient building more affordable. In fact, rebates can be combined with tax credits or other special offers to maximize benefits. You need to keep updated on the offers available to you by researching before every purchase.


High upfront costs often act as an impediment in constructing or remodelling energy efficient rental properties. Energy efficient financing is an effort to reduce the burden of high upfront costs and encourage investors to invest in energy efficiency improvements and retrofits. 

Numerous financing avenues allow investors to think green, and these include:

● On-bill financing

● Property tax financing

● Energy service performance contracting

● Energy efficiency mortgages

Do your homework before embarking on an  efficient building project. The provisions are rather complex and demand the involvement of specialists in most cases. 

Find a reliable contractor with traceable and extensive experience in energy efficient projects. Verify the experience and reliability of the contractor through the Better Business Bureau and speaking to previous clients about their experiences working with remodeling contractors in TX or any other location.

For more information visit: www.urspecialtygroup.com