Are those Energy Tax Credits expiring this year? Great info from ECOBroker International
Thank you Karen Tobler for the insight especially when the 1st time home buyers credit is creeping to a close!
Are those Energy Tax Credits expiring this year?
The short answer is NO! With all of the things starting and stopping, you may be wondering if you can still take advantage of the federal energy tax credits. The answer is yes and you should plan your projects now.
There are really two programs: one for ENERGY EFFICIENCY and a separate one for RENEWABLE ENERGY. They have very different rules, a few of which are summarized here: Residential ENERGY EFFICIENCY Tax Credits · Part of the stimulus package apply to projects such as weatherization, high efficiency systems such as heating and air conditioning, high efficiency water heaters, energy efficient windows, etc. · The system requirements are specific - for example Energy Star® qualified appliances or windows do not all meet the requirements of this program. · The tax credit is 30% of the allowable costs of the equipment and installation. ·
The credit is capped at $1,500 for any one or multiple projects installed between January 1, 2009 and December 31, 2010. Thus these must be in service by the end of 2010 to be eligible for the tax credit. · These efficiency improvements must be installed in the owner's principal residence. Residential RENEWABLE Energy Tax Credits ·
This program relates to the cost of equipment and installation of renewable energy systems such as solar-electric, solar hot water (domestic and home heating), wind generated electricity, geothermal heat pumps, and fuel cells. The eligible equipment is carefully defined. · Some of these credits have been in place for a number of years, but the current program applies to renewable energy systems placed in service after December 31, 2008 and before December 31, 2016. That is not a mistake - the program has a lifetime of 8 years. ·
The tax credit is again 30% of the eligible costs. · There is NO cap on the amount of the credit and unused credits may be carried to later tax years. · This equipment must be installed on a residence, but it does NOT have to be the taxpayer's principal residence. Ask your tax advisor if you could use these credits for a second home or a residential investment property.
A great deal of information on tax rebates and other incentives is available at:
http://www.dsireusa.org/index.cfm?EE=0&RE=1
http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
Comments(1)