If you own a home in Louisiana, you can take advantage of insurance and tax breaks bytaking on home renovations that comply with statewide building standardsenacted after Hurricane Katrina. Luckily, these renovations can not only help you save money in the long-run, but also protect your home from future wind and water damage.
According to Louisiana’s state insurance commissioner, state lawmakers passed three incentives in 2007 to have more homes meet new building-code standards through “retrofitting” – or making modifications. These modifications include:
- Roof bracing
- Shuttering
- Building design
- Wall-to-floor foundation strength improvements
- Stronger windows, doors and skylights
The codes already apply to homes built after 2006, but for older homes, makingadjustments will make them safer and help them to qualify for these three insurance and tax incentives:
- Sales Tax Exclusion – When buying storm shutters that provide protection in storms and hurricanes,you will receive a sales tax exclusion.
- Discounts on Insurance Costs – If you renovate your entire home to meet new building standards, you will receive a discount on your insurance. All insurance companies- including state-run Citizens PropertyInsuranceCorp. – are offering discounts.
- Tax Deduction – After renovations are made (and appropriately inspected by an official registered with the Louisiana State Uniform Construction Code Council), you will receive a tax deduction equal to one half of the cost to rehabilitate the home. Renovations must be madeon or after Jan. 1, 2007. You cannot include federal or state incentives or grants received- only out-of-pocket expenses. The maximum for this deduction is $5,000 and should be claimed the year the work was completed (if the work was completed in 2008, you can amend your 2008 state tax return).
Paying to renovate your home may be a costly venture, but with tax and insurance breaks – as well as a safer home – the trade-off could very well be worth it.
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