The American Recovery and Reinvestment Act of 2009 extended many consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPACT) and amended in the Emergency Economic Stabilization Act of 2008 (P.L. 110-343)
The Energy-Efficiency Tax Credit is available to homeowners who have energy efficiency home improvements done to their existing principal residence for products purchased during the two year period of 2009 and 2010. The maximum tax credit limit is $1,500. The tax credit is available for any amount that is spent up to $5,000 on a single or multiple products (homeowners will receive 30% back as a tax credit). The expiration date is December 31, 2010.
NOTE: New Construction and rentals do not qualify.
QUALIFIED ENERGY PRODUCTS (Installation costs may be included):
- Electric heat pump water heaters (Water heating can account for 14%-25% of the energy consumed in your home).
- Electric heat pumps
- Central air conditioners
- Natural gas, propane, or oil water heaters (Water heating can account for 14%-25% of the energy consumed in your home).
- Natural gas, propane, furnaces
- Natural gas, propane, or oil water boilers and oil furnaces
- Advanced main air conditioning fans: an efficient fan, or blower motor which blows the air that your furnace heats up through the duct system.
BUILDING ENVELOPE COMPONENTS:
- Insulation material or system (adding adequate insulation is one of the most cost-effective home improvements that a homeowner can do).
- Exterior window, skylight, door, storm window or storm door with a U factor of .3 or below (Can reduce energy bills)>
- Metal or asphalt roofs that resist heat gain (Qualified roof products reflect more of the sun's rays, which can lower roof surface temperature by up to 100F, decreasing the amount of heat transferred into your home).
THE WIND, SOLAR, GEOTHERMAL AND FUEL CELL TAX CREDIT (Tax code Section 25D):Tax credits are available at 30 percent of the cost, with no cap through 2016, for existing homes and new construction:
- Geothermal Heat Pumps (use the ground instead of outside air to provide heating, air conditioning and hot water because they use the earth's natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available).
- Solar Panels (Solar cells that capture light energy from the sun and convert it directly into electricity).
- Solar Water Heaters (Come in a wide of designs, all including a collector and storage tank, and all using the sun's thermal energy to heat water).
- Small Wind Energy Systems
- Fuel Cells
NOTE: Save your receipts and the Manufacturer's Certification Statement for your records and submit Form 5695 with your taxes.
Comments(3)