Weekend Projects: Energy Efficiency Tax Credits
Have you been thinking of some home improvement projects but are afraid to spend the money in the current economy? Tax Credits for Energy Efficiency Products can help. It is scary not knowing if all our jobs will be around in 6 months, but if you have some savings to use for these projects and really need new windows, doors, more efficient electric appliances, new attic insulation or a new furnace or air conditioner there are some Tax Credits that may help you save 30% more than you can get discounted at the store.
I recently got an email from my realtor about making these home improvements that are tax deductible. You can’t get all the money back that you spend on the energy efficient appliances, windows or alternative energy sources like solar and thermal heat, but you can get up to 30% back. If you need these things anyway now is the time to buy before the end of 2010 because the Tax credits may not all be available beyond then. Here are the details from the home buyer email:
Energy efficiency Tax Credits offered by the federal government could be even more useful for the average homeowner.
You may be eligible for a tax credit equal to 30 percent of the cost of materials (up to $1,500) for certain products purchased between January 1, 2009 and December 31st, 2010.
Below are the rating specifications for eligible energy efficiency products:
Product Category Product Type Tax Credit Specification
Insulation Meets 2009 IECC & Amendments
Windows & Doors Windows, Doors, and Skylights Before June 1, 2009: Must meet ENERGY STAR criteria After June 1, 2009: U factor <= 0.30 SHGC <= 0.30
Storm Windows & Storm Doors In combination with the exterior window over which it is installed: has a U-factor and SHGC of 0.30 or below Meets the IECC
Roofing Metal Roofs, Asphalt Roofs All ENERGY STAR qualified metal and reflective asphalt shingles HVAC Central A/C Split Systems: SEER >= 16, EER >=13 Package systems: SEER >= 14, EER >= 12
Air Source Heat Pumps Split Systems: HSPF >= 8.5, EER >= 12.5, SEER >= 15 Package systems: HSPF >= 8, EER >= 12, SEER >= 14
Natural Gas or Propane Furnace AFUE >= 95
Oil Furnace AFUE >= 90 Gas, Propane, or Oil Hot Water Boiler AFUE >= 90
Advanced Main Air Circulating Fan No more than 2% of furnace total energy use.
Water Heaters Gas, Oil, Propane Water Heater Energy Factor >= 0.82 or a thermal efficiency of at least 90%.
Electric Heat Pump Water Heater Same criteria as ENERGY STAR: Energy Factor >= 2.0
Biomass Stove Biomass Stove Stove which burns biomass fuel to heat a home or heat water. Thermal efficiency rating of at least 75% as measured using a lower heating value.
Extended Opportunities: The following upgrades are eligible for a 30% of cost tac credit (without an upper limit) if placed into service before December 31st, 2016:
Geo-Thermal Heat Pump Geo-Thermal Heat Pump Same criteria as ENERGY STAR: Closed Loop: EER >= 14.1, COP >= 3.3 Open Loop: EER >= 16.2, COP >= 3.6 Direct Expansion: EER >= 15, COP >= 3.5
Solar Energy Systems Solar Water Heating At least half of the energy generated by the “qualifying property” must come from the sun.
Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household. The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling.
The system must be certified by the Solar Rating and Certification Corporation (SRCC). Photovoltaic Systems Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.
Small Wind Energy Systems Residential Small Wind Turbines (windmills) Has nameplate capacity of not more than 100 kilowatts.
Fuel Cells Residential Fuel Celland microturbine system Efficiency of at least 30% and must have a capacity of at least 0.5 kW.