New Tax Credit
Get more rebates!
On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are:
- The tax credits that were previously effective for 2009, have been extended to 2010 as well.
- The tax credit has been raised from 10% to 30%.
- The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
- The maximum credit has been raised from $500 to $1500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
- The $200 cap on windows has been removed.
Tax credits are now available for home improvement by following these conditions:
- Must be "placed in service" from January 1, 2009 through December 31, 2010
- Must be for taxpayer's principal residence
- Maximum amount is $1,500 in 2009 & 2010 for most home improvements (geothermal heat pumps, solar water heaters, solar panels, fuel cells, and windmills are not subject to this cap)
- For record keeping, save your receipts and the Manufacturer Certification Statement3, OR for windows, you can save the ENERGY STAR label from your new windows
- Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010
- If you are building a new home, you can qualify for the tax credit for photovoltaics, solar water heaters, small wind systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.
- For more information Contact Us.
SUMMARY OF TAX CREDITS FOR HOMEOWNERS
| Product Category |
Product Type |
Tax Credit Specification |
Tax Credit |
Notes |
| Windows & Doors |
Exterior Windows and Skylights |
U factor <= 0.30
SHGC <= 0.30 |
30% of cost, up to $1,5002 |
Not all ENERGY STAR labeled windows and skylights qualify for tax credit. |
| Storm Windows |
Meets IECC1 in combination with the exterior window over which it is installed, for the applicable climate zone |
T30% of cost, up to $1,5002 |
Manufacturer Certification Statement3 will list classes of exterior window (single pane, clear glass, double pane, low-E coating, etc.)4 that a product may be combined with to be eligible in specific climate zones. |
| Exterior Doors |
U factor <= 0.30
SHGC <= 0.30 |
30% of cost, up to $1,5002 |
Not all ENERGY STAR doors will qualify. |
| Storm Doors |
In combination with a wood door assigned a default U-factor by the IECC1, and does not exceed the default U-factor requirement assigned to such combination by the IECC |
30% of cost, up to $1,5002 |
|
| Insulation |
Insulation |
Meets 2009 IECC & Amendments |
30% of cost, up to $1,5002 |
For insulation to qualify, its primary purpose must be to insulate. (example: vapor retarders are covered, siding does not qualify). Must be expected to last 5 years OR have a 2 year warranty |
Note:
1Either the 2001 Supplement of the 2000 International Energy Conservation Code or the 2004 Supplement of the 2003 International Energy Conservation Code.
2Subject to a $1,500 maximum per homeowner for all improvements combined.
3A Manufacturer’s Certification is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records but do not have to submit a copy with their tax return.
4Additional information on exterior window features may be viewed at Anatomy of an Energy Efficient Window.
|
