Would you like to save money every month on your energy bill? What if you could also put a significant dent in the amount of federal taxes you pay, while enjoying more comfort during the heat of summer or the cold of winter? How would you like to make a contribution to environmental quality, help reduce our dependence on foreign oil, and help stimulate the economy, while also increasing the value of your home? 

The good news is that with the right home improvements, all of these benefits can be yours. Thanks to the recent stimulus bill entitled American Recovery and Reinvestment Tax Act of 2009, certain types of energy-saving remodeling projects qualify for significant tax credits on your 2009 and 2010 federal returns. Other improvements even provide tax credits all the way through 2016 and are also available to new homebuyers. 

And there is more good news. If you have plans to put your home on the market in the next several years, you may be able to recoup a significant part of your investment in home energy savings through a bigger check at closing. For example, a recent study of cost versus value in home improvements showed that window replacements could return as much as 79.2% of their cost in the form of a higher sales price. 

Of course, as long as you live in your home the renovations will contribute to the quality of your life and allow you to live in greater comfort. Similarly, if you want to buy a home but are hesitating because of the expense of energy-saving updates, the tax credits can make your decision easier, since they effectively reduce the renovation cost. In either case, the benefits don’t end with a lower income tax bill. Substantial monthly energy savings can translate into more disposable income to spend on whatever you enjoy the most.

Investments That Qualify for the Tax Credits

The recent tax credit bill is designed to stimulate the economy while also helping to save energy. What renovations qualify for these special tax credits and how much is available in the way of savings? There are two types of projects. In the first group are those such as upgrades to windows and doors, insulation improvements, installing a metal or asphalt roof, and utilizing more fuel-efficient heating and air conditioning units. This first group also includes installation of more efficient non-solar water heaters as well as the purchase of certain types of biomass stoves for general heating or water heating. Biomass stoves are those that burn plant-based fuels that are available on a renewable or recurring basis. Examples are wood pellet or corn stoves. 

For these types of renovations, savings are available on 2009 and 2010 returns. Projects such as these must be placed in service (which means they are ready and available for use) between now and December 31, 2010. The tax credit amount is 30% of their cost, up to $1,500. This means a $4,000 improvement could yield a $1,200 credit against taxes owed. The maximum total credit allowed for all such projects cannot exceed $1,500. 

If you choose to undertake renovations that make use of alternative energy sources, you can receive a credit of 30% of the cost with no upper limit. Tax credits for these kinds of projects are available through 2016, if placed in service before December 31 of that year. Qualifying projects include installation of geothermal heat pumps, solar panels, solar water heaters, small wind energy systems, and fuel cells. 

While the tax credit program is very generous, there are some restrictions. A big variable is installation costs, which can be included in computing tax credits for some projects, but not others. For example, if you are replacing your air conditioner or water heater, or if you are installing a biomass stove or a geothermal heat pump, installation costs are included. On the other hand, only the cost of materials is included in tax credit computations for windows, doors, insulation, or roofing. 

To determine if you have a qualifying project, start with a visit to the Energy Star Web site at www.energystar.gov/taxcredits. Of course, you will also want to consult your tax advisor before starting your project. If you determine that your renovation is one that does not include installation costs, let your contractor know that you will require an itemized bill that separates out labor and materials. 

Qualifying for Tax Credits

There are no income limits for the tax credits, which means any homeowner can qualify. To receive the entire credit, the taxes you owe must exceed the credit amount. If you select renovations which are subject to the $1,500 maximum, excess amounts cannot be carried forward to future years. All projects do not have to be completed in the same year, however. You could do a $2,000 roofing project this year and take the $600 (30%) credit on your 2009 return. Then next year you could spend up to $3,000 on other renovations such as a biomass stove, insulation, or windows to receive another $900 in credits in 2010.

In most cases, to qualify, the improvements must be to your principal residence. This means if you are lucky enough to own a second home, there may be many reasons to make it more energy-efficient, but what you spend will not yield a tax credit. There are, however, a few exceptions to this rule as well. 

Certain renovations (primarily those which make use of alternative energy sources), do qualify for the tax credit, even if they are done on a second home. Some of these include installation of geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems.

Benefits to Buyers and Sellers 

From a seller’s perspective, making your home greener can help it sell more quickly and for a higher price. In a recent study by McGraw-Hill based on a survey of one million households, it was found that 70% of buyers are more inclined to purchase a home with green features, especially during a down market. Of course, these features also make for a home that is more comfortable and more economical to operate in the meantime. Even before the recent tax credit legislation, 42% of homeowners in this study gave going green as the most important reason for undertaking renovations. The available tax credits may increase this figure. As more homes go green, it will be increasingly important for others to upgrade in order to be competitive when their homes finally go on the market. Fortunately, the tax credits make it easier to do so. 

If you haven’t upgraded your heating and air system lately, that may be a good place to start. Bruce Locker of Robertson Electric in Charlottesville related that lots of people are doing just that, particularly since older systems can be very inefficient. He gave as an example old gas furnaces that allowed as much as 40% of their heat to be lost up the chimney. To qualify for the credits, your new gas furnace must be 95% efficient, which means only 5% heat loss. Another big benefit of a newer heating and air system is more even temperature throughout the house, which means greater comfort. According to Locker, in most cases a new heating and air system will not use up the maximum allowable $1,500 credit. 

If you install a new heating and air system and are thinking about selling, be sure to save your utility bills as proof of the effectiveness of your upgrades. In addressing this issue, Cynthia Hash, a REALTOR® with Keller Williams Real Estate who holds the new Green REALTOR® designation, suggests doing the repairs at least six to nine months ahead of going on the market. If you want to sell during next year’s spring market, the time to start repairs is now. This will allow you to benefit from this year’s tax credits and also give you several months of paid utility bills to prove to prospective buyers that your home is truly green. 

What if, on the other hand, you are a buyer? How do the tax credits help you? Suppose you are one of the 70% looking for a green home, but you fall in love with a house with a creaky old heat pump, insufficient attic insulation, or an ancient, rusty water heater? Since you know the tax credits are available, you can evaluate the repairs and figure the savings before making an offer on the house. Obviously, it is easier to make an offer knowing you have big savings coming your way at tax time. Just remember, there is a deadline on the completion of repairs in order to receive this generous benefit. 

If you are evaluating available energy savings, a good renovation to consider is the tankless water heater. According to Irene Patterson of Charlottesville Gas, this popular device heats water only as needed. She says the gas company receives lots of calls about this option, which offers substantial energy savings over a conventional heater. An additional benefit is that this is one of the upgrades for which installation costs are included when figuring tax credits. 

Whether you are a buyer or a seller, keep in mind that the biggest savings come from renovations which make use of alternative energy sources. These may cost more up front, but the tax credits and ongoing savings are much greater as well. For example, expect a 50% to 80% drop in the cost of heating your water when you go solar. Geothermal heat pumps, another popular upgrade, use 30% less energy than standard models and their operation is much quieter. 

While many of the credits are available to existing homeowners only, people building new homes receive credits for innovations that make use of alternative energy sources. While most of us are familiar with solar as a source of energy, we may be less knowledgeable about wind. Steve Crandall, builder and owner of Tectonics II, LTD, is working to get approval from Nelson County to utilize residential wind turbines in some of his new homes.

Unlike solar systems where energy is stored for later use, a wind system is wired into the home’s panel box. If it generates excess electricity, the meter turns backwards, sending power back to the grid and giving a credit to the homeowner. An average household will save approximately 25% on their energy bill with one of these systems. Crandall described the tax credits as incentives to capture the money blowing through the air. 

In the case of new construction, the cost of the upgrades is included in the home price and therefore in the buyer’s mortgage payment. This means not only are tax credits available through 2016, but the interest deduction will be greater, because of the added cost of the upgrades. Consult with your builder and your tax advisor about which options make the most sense for your new home.

Choosing the Best Renovations

How do you as a consumer decide which renovations or energy saving options are best for you? A good place to start is by consulting your REALTOR®. Laura Winn Smith of Pace Real Estate, who holds a Green REALTOR® designation, advises that while your agent can’t be an expert on all things green, he or she is prepared to help you find the resources you need in order to make the best decision. 

In this second part of our series on schools in Central Virginia, we’re focusing on some of the outstanding private schools in the area. 

Blue Ridge School 

www.blueridgeschool.com

Founded in 1909, Blue Ridge School is an independent, all-boys, all-boarding college preparatory school. It is located 20 miles northwest of Charlottesville on nearly 800 acres abutting Shenandoah National Park. 

The school’s mission is to help its student body, consisting of approximately 190 young men in grades 9-12, reach their potential through personalized, structured, innovative learning practices. With 30 faculty members, the student/faculty ratio is 6:1 with an average class size of nine. The school boasts an impressive record of 100% of its graduating students being accepted to four-year colleges. 

The Blue Ridge School offers an extensive Outdoor Program with academic and recreational components that takes advantage of its mountain location while encouraging nontraditional activities, teamwork, personal challenges, and a respect for the natural world. 

Blue Ridge School seeks boys who respond well to personalized instruction; are willing to grow and who are open to joining the Blue Ridge family; are honest and respectful of other people and their property; will strive to fulfill their potential as learners and as leaders; and will flourish in an academic environment that focuses on learning to use one's mind well.

Charlottesville Catholic School

www.cvillecatholic.org

The nationally recognized Charlottesville Catholic School (CCS) offers Pre-K through 8th grade curriculum, with standardized test scores ranking among the highest in the country. The school welcomes students of all faiths, believing that nurturing Christian values along with excellence in education fosters character and leadership development and inspires good citizenship.

CCS is dedicated to excellence in education and to the spiritual development of youth within the framework of the Gospel of Jesus Christ and the tradition of the Catholic Church. Its fundamental task is educating the whole person, instilling in students a lifelong commitment to learning, to developing Christian virtues, and to fostering community service.

As a result of its strong academic performance and demonstrated dedication to the faith community, CCS achieved initial accreditation by the Virginia Private Education Association in 2000. Continuing its tradition of excellence, the school was awarded re-accreditation with "exemplary" status in the spring of 2006 by the Virginia Private Education Association and the Southern Association of Colleges and Schools (SACS).

The Covenant School

www.covenantschool.org

Accredited by the Southern Association of Colleges and Schools and the Virginia Association of Independent Schools, The Covenant School was founded in 1985 as a non-denominational Christian day school seeking to promote the moral, intellectual, and physical development of students in a stimulating and nurturing environment. 

The Covenant School is co-educational and enrolls students in pre-kindergarten through grade 12. It provides formal education in traditional academic disciplines and fine arts, and offers a broad and varied program of physical education and sports. A rigorous college preparatory curriculum taught within a Christian world-view creates an environment that is both supportive and challenging, seeking to inspire students to love God and to love learning. From the phonics foundation laid in pre-K to the honors and Advanced Placement courses in high school, Covenant students are encouraged to become critical thinkers and problem solvers.

The lower school (pre-K–grade 6) is located in a historic brick building near downtown Charlottesville. The upper school is situated on a 23-acre campus in Albemarle County just south of Charlottesville. There, the middle and high school enjoy a 96,000-square-foot, state-of-the-art facility built in 2002, with a performing arts center, gymnasium, and several athletic fields. Covenant’s enrollment has grown to more than 550 students.

Charlottesville Waldorf School 

www.cwaldorf.org

Waldorf schools strive to educate not only the intellect, but also the child's full and essential humanity—his or her ability to feel and to do, as well as to think. The Waldorf curriculum also recognizes that our common humanity develops in clear, predictable, and understandable stages, which should be honored.

Charlottesville Waldorf School (CWS) opened its doors as Crossroads Waldorf School in September 1982, in a farmhouse in southern Albemarle County. In 1991, the school moved to Crozet, where it rented the old elementary public school until 2007. During this period, the school also maintained an early childhood center in Charlottesville. 

Throughout its history, CWS has sought to establish a permanent location that embodies its mission. In the spring of 2002, a group of parents, grandparents, and friends of the school purchased a 13-acre property on Rio Road for the school’s permanent home. In the fall of 2007, the school consolidated its two branches on its Rio Road property, housing its grade school in an environmentally designed building that is a “LEED-registered project” and is anticipating a rating of LEED-Certified. 

On June 5, groundbreaking began on its phase-two LEED building that will provide the campus with a state-of-the-art library that will hold a collection of over 10,000 books, a large pavilion for festivals and covered outdoor play, music room, specialty classroom, administration office, basketball courts, farm garden, and a paved driveway. 

With the help of the Charlottesville Waldorf Foundation, the school’s vision of being the "Greenest School in America" is well on its way to reality.

The Field School

www.fieldschoolcv.net

The Field School, a middle school for boys, has a mission to “develop well-rounded boys of character and accomplishment.” Founded in 2007, Field School offers a traditional, academically rigorous curriculum in English, social studies, math, science, Latin, Spanish, and arts and music, along with character and leadership development. Although a small school, it has consistent and deeply held values—honesty, compassion, trust, respect, fairness, courage, and responsibility. Daily team sports participation emphasizes physical fitness, teamwork, fair play, and sportsmanship. The school features regular field trips to expand the classroom and to increase the vitality of learning experiences. In 2009, Field School is moving into the Old Crozet School with approximately 11,000 square feet of space including six classrooms, a gymnasium, and a kitchen as well excellent outdoor field space. In order to make the site more convenient to Charlottesville parents, the school provides a daily shuttle from several stops in Charlottesville.

Fork Union Military Academy 

www.forkunion.com

Fork Union Military Academy is one of the nation’s leading college preparatory military schools for boys in grades 6 to 12 and postgraduate. Nationally known for its emphasis on Christian values, top quality academics, and superior athletic programs, the school remains true to its motto of “Body, Mind and Spirit.”

The school was founded in 1898 by Dr. William E. Hatcher in the village of Fork Union. In 1913, the school began receiving support from the Baptist General Association of Virginia and maintains the partnership to this day.

The academy is accredited by the Virginia Association of Independent Schools and is a member of The Association of Boarding Schools (TABS). FUMA offers a unique One Subject Plan of instruction in its upper school and offers the middle school the traditional plan of study. To make sure every cadet receives the individual attention he deserves, class size is kept small. The academy teachers are dedicated to the challenge of helping young men achieve academic success–and their involvement doesn’t end in the classroom. FUMA’s faculty members are experts in helping young men learn responsibility and self-discipline in a structured boarding school environment.

Miller School

www.millerschool.org

Miller School, a coeducational day and boarding college preparatory school for students in grades 8-PG, first opened its doors in 1878 with 33 students. Girls first enrolled in 1884, making Miller School one of the nation's oldest coeducational boarding schools. Today Miller School is home to nearly 150 boys and girls from around Virginia, the nation, and the world. 

Proud of being a small school with small classes, Miller boasts a vigorous academic college preparatory program and a unique “mind, hands, and heart” curriculum. There is an emphasis on character, honor, and individual responsibility; arts education; community service; and athletics for both boys and girls. Average class size at the Miller School is 10; 60% of students are boarders; 40% are day students.

The school is situated 12 miles west of Charlottesville on a gently rolling campus of 1,600 scenic acres.

Montessori Community School--Pantops Mountain

www.montessoripantops.org

Montessori Community School (MCS) is fully accredited by both the American Montessori Society and the Virginia Association of Independent Schools. Montessori promotes the development of the whole child balancing social, emotional, intellectual, physical, and spiritual growth. MCS serves 200 children in 9 classrooms staffed by Montessori-trained teachers and outfitted with Montessori materials for these age groups: Montessori Mornings (6-24 months with an adult); Toddler Community (18 months-3 years); Children’s House (PreK and K); Elementary (grades 1-3 and 4-6); and Middle School (grades 7 & 8). The 9-acre campus is recognized as a wildlife sanctuary by Audubon International and the National Wildlife Federation and is also home to a greenhouse and music, drama, and art studios staffed by faculty trained in those subjects. Spanish, physical education, and community service round out the students’ experience at MCS.

Renaissance School 

www.renaissanceschool.org

Renaissance School, an independent, coeducational college preparatory school for grades 9 through 12, celebrated in 2009 the tenth anniversary of its first graduating class. The school’s success has enabled it to move from its original location on the Downtown Mall in Charlottesville to a larger facility on Historic Court Square.

Renaissance has had a 100% college acceptance rate for graduating seniors, ranging from the University of Virginia to the Rhode Island School of Design. Five graduating seniors who applied received over $460,000 in scholarship money, with some receiving full-tuition scholarships at the college of their choice.

Renaissance School offers a remarkable high-school experience to students who want to be engaged in life to the fullest. Courses are intellectually stimulating, rich in content, and highly interactive. Classes are small, and students are viewed as individuals. Students are guided to take responsibility for their own development. The faculty is committed to providing each student the support he or she needs to work toward his or her full potential, academically, socially, and artistically. The comprehensive curriculum weaves together the intellectual, artistic, social, and humanitarian fabric to establish a strong foundation for the maturing adolescent’s lifelong interest in learning.

St. Anne’s-Belfield School

www.stab.org

The St. Anne's-Belfield School philosophy is that the transmission of knowledge, the encouragement of curiosity, the development of rational thought, and the cultivation of responsible, honorable behavior are the great ends of education. Although they expect graduates to be prepared for the nation's finest colleges and universities, their true purpose is to create a challenging yet charitable atmosphere where students gain skills necessary for both creative and disciplined thought, where they have opportunities to achieve in athletic and artistic endeavors, where they understand their responsibility as a member of a community, and where high expectations for both their personal and intellectual lives are complemented by the school's commitment to nurturing students in the spiritual dimension of life.

A co-ed school with last year’s enrollment of 841 students in pre-school through grade 12, the average class size is 12 students. Approximately 80% of the faculty hold advanced degrees, and students enjoy a student/teacher ratio of nearly 8:1. The median SAT for the Class of 2008 was 580 verbal, 620 math.

Two campuses totaling 49 acres include 97 classrooms (including three computer labs and eight science labs), three libraries, and three gymnasiums. Recent additions include a 32,000-square-foot Athletic and Convocation Center, a Student Activities Center, a baseball field, a softball field, and six tennis courts. Thirty varsity and junior varsity teams compete against public schools and in independent school leagues. About 80% of upper school students participate in interscholastic sports. 

In addition, 78% of the student body participates in fine or performing arts, with five performance orchestras and four choirs.

Tandem Friends School 

www.tandemfs.org

Tandem School was founded in 1970 by John Howard and Duncan Alling. Their philosophy, which continues to capture the essence of a Tandem education, was based on the conviction that learning thrives in an environment where faculty and students enjoy close, trusting relationships, values and ideas are freely examined, and decision-making involves the whole school community. They envisioned an economically and racially diverse school dedicated to academic rigor in the context of a curriculum embracing the arts, environmental stewardship, and community service.

In 1995, Tandem formally adopted the philosophy and practices of Quaker education and became Tandem Friends School, now serving 240 students in grades 5-12. The school’s mission statement best summarizes its goals: “Rooted in Quaker values, Tandem Friends School prepares young people for higher education and fulfilling lives of integrity, creative expression, and service.”

The school’s unofficial mottoes also capture the Tandem philosophy: “Freedom with Responsibility” and “Kindness and Wisdom.”

Tandem is a member of the Delaney Athletic Conference, fielding 18 teams. A strong arts program features visual arts, music, and performing arts as well as an award-winning digital film program. The faculty/student ratio is 1:7 with classroom sizes ranging from 12-18 students. Tandem is accredited by the National Association of Independent Schools, the Virginia Association of Independent Schools, and is affiliated with the Friends Council on Education.

Village School 

www.villageschool.us

Village School is a private middle school for girls located in downtown Charlottesville, which provides an avenue for young women to find their own voices as learners. The school believes that effective self-expression and self-confidence arise out of the mastery of skills. As a member within its learning community, each student acquires the skills of making judgments and defending them.

A fine arts program is an integral part of the Village School curriculum. The use of computer technology figures prominently in daily life, where a ratio of one computer for every two students is maintained.

Physical education and development are also stressed. The girls play on citywide field hockey and lacrosse leagues, as well as participate in soccer, swimming, and other sports. Also, four Village School basketball teams play in the county YMCA league each year.

The school believes strongly in the advantages gained through an awareness and understanding of others. Consequently, community service is an integral part of the school, and being downtown provides many community service opportunities.