Tax Credits for Energy Efficiency Improvements

If you made eco-changes to your home in 2008, then you were entitled to some tax credits, but not many. 2008 energy efficient credits included:

• geothermal heat pumps (30%, up to $2,000)
• solar water heaters (30%, up to $2,000)
• solar panels (30%, up to $2,000)
• small wind energy systems (30%, up to $4,000)
• fuel cells (30%, up to $500 per .5 kW of power capacity)

THE BETTER NEWS:

Now is an excellent time to plan for eco-home changes. Energy efficiency improvements that are eligible for a tax credit IF you make the changes January 1, 2009 through December 31, 2010 include:

• Windows including storm windows, exterior windows and skylights.
• Exterior and storm doors.
• All ENERGY STAR metal and asphalt roofs.
• Home insulation that meets 2009 IECC & Amendments.
• Many types of central A/C, air source heat pumps, natural gas or propane furnaces, and more related to HVAC.
• All ENERGY STAR gas tankless water heaters.
• All ENERGY STAR electric heat pump water heaters.
• Biomass stoves.
• All ENERGY STAR geo-thermal heat pumps.
• All ENERGY STAR solar water heaters.
• Photovoltaic systems that provide electricity for your residence, and meet applicable fire and electrical code requirement.
• Small wind energy systems used for residential.
• Many types of fuel cells.
• Additionally, “Home builders are eligible for a $2,000 tax credit for a new energy efficient home that achieves 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements and there is also a $1,000 tax credit to the producer of a new manufactured home achieving 30% energy savings for heating and cooling over the 2004 IECC and supplements.“

Also, installation costs ARE COVERED for:

• HVAC (Heating, Ventilation and Air Conditioning) systems
• Biomass Stoves
• Water Heaters (including solar)
• Solar Panels
• Geothermal Heat Pumps
• Wind Energy Systems
• Fuel Cells

That’s a pretty long list of changes you can make AND get tax credits for. Of course, like with any tax credit there are rules. Some of the 2009-2010 rules that apply include:

• Improvements must be for your principal residence.
• Second homes and rentals qualify for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems as well as residential.
• $1,500 is the cap amount that can be claimed for all energy efficient products in 2009 & 2010, except for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016.
• You’ve got to have a Manufacturer Certification Statement to qualify
• If you are building a new home, you do not qualify for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.

Still, all-in-all, this list of credits available to homeowners is pretty cool. It makes making eco-changes a little easier and cost effective. So, if you have been giving some thought to changes you can make to green your home, read over the tax credit info for 2009-2010 before you choose products.