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Home Energy Tax Credit Info

Reblogger Sylvia Barry

Real Estate Agent with Coldwell Banker Previews International (#1 Marin_Sonoma_San Francisco_North_Bay) DRE# 01415544

February 21, 2009 08:26 AM

Isaac E. Chavez, ECOBROKER in New Mexico kept an eye on the 2009 Home Energy Tax Credit for All while we all are concentrating on the bailout plan.

This is perfect for the current Marin Home Owners who just bought in the unprecent softened Marin Real Estate Market where a lot of buyers are purchasing Bank Owned, REO, Short Sale homes at a bargain and upgrading them to the specifications they like.

A great way to save serious money while going Green and save the environment during the process.

Tax Credits for Consumers:

Home Improvements

Tax credits are now available for home improvements:

must be "placed in service" from January 1, 2009 through December 31, 2010

must be for taxpayers 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. More.

SUMMARY OF TAX CREDITS FOR HOMEOWNERS
Product CategoryProduct TypeTax Credit SpecificationTax CreditNotes

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 30% 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

Roofing Metal Roofs,
Asphalt Roofs ENERGY STAR qualified 30% of cost, up to $1,500²
All ENERGY STAR labeled metal and asphalt roofs qualify for the tax credit.

Must be expected to last 5 years OR have a 2 year warranty.

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

HVAC Central A/C Split Systems:
EER >=13
SEER >= 16

Package systems:
EER >= 12
SEER >= 14 30% of cost, up to $1,500²
For a list of qualified products, go to the Consortium for Energy Efficiency product directory , click on the Air Conditioners and in the "CEE Tier" enter "Residential Advanced Tier 3."

Note - not all ENERGY STAR products will qualify for the tax credit.

ENERGY STAR Spec:

Split Systems:
EER >= 12 SEER >= 14.5

Package systems:
EER >= 11 SEER >= 14

Air Source Heat Pumps Split Systems:
HSPF >= 8.5
EER >= 12.5
SEER >= 15

Package systems:
HSPF >= 8
EER >= 12
SEER >= 14 30% of cost, up to $1,500²
Note - not all ENERGY STAR products will qualify for the tax credit.

ENERGY STAR Spec:

Split Systems:
HSPF >= 8.2 EER >= 12 SEER >= 14.5

Package systems:
HSPF >= 8 EER >= 11 SEER >= 14

Natural Gas or Propane Furnace
AFUE >= 95
30% of cost, up to $1,500²
For a list of qualifying products go to the Gas Appliance Manufacturing Association

Not all ENERGY STAR products will qualify for the tax credit.

ENERGY STAR Spec:

Gas Furnaces: AFUE >= 90

Oil Furnaces: AFUE >= 85

Boilers: AFUE >= 85

Oil Furnace
AFUE >= 90
30% of cost, up to $1,500²

Gas, Propane, or Oil Hot Water Boiler
AFUE >= 90
30% of cost, up to $1,500²

Advanced Main Air Circulating Fan No more than 2% of furnace total energy use 30% of cost, up to $1,500²
For a partial list of qualifying products go to the Gas Appliance Manufacturing Association

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
30% of the cost - NOT subject to $1,500 cap
All ENERGY STAR labeled geo-thermal heat pumps qualify for the tax credit.

Use IRS Form 5695

Must be "placed into service" between Jan. 1, 2008-Dec. 31, 2016.

Water Heaters Gas, Oil, Propane Water Heater Energy Factor >= 0.82
or a thermal efficiency of at least 90%. 30% of cost, up to $1,500²
Not all ENERGY STAR gas storage and gas condensing water heaters will qualify for the tax credit. All ENERGY STAR gas tankless models will qualify.

ENERGY STAR criteria:

Gas Storage:
Energy Factor >= .62

Gas Tankless:
Energy Factor >= 0.82

Gas Condensing:
Energy Factor >= 0.8

For a partial list of qualifying products go to the Gas Appliance Manufacturing Association

Electric Heat Pump Water Heater Same criteria as ENERGY STAR: Energy Factor >= 2.0 30% of cost, up to $1,500²
All ENERGY STAR qualified electric heat pump water heaters qualify for the tax credit.

Biomass Stove Biomass Stove
Stove which burns biomass fuel⁵ to heat a home or heat water.

Thermal efficiency rating of at least 75% as measured using a lower heating value.
30% of cost, up to $1,500²

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).
30% of cost, up to $2,000
Use IRS Form 5695

Must be placed in service before December 31, 2016.

Photovoltaic Systems Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement. 30% of cost
Use IRS Form 5695

Must be placed in service before December 31, 2016.

Small Wind Energy Systems Residential Small Wind Energy Systems 30% of the cost
Must be placed in service by December 31, 2016.

Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

Not limited to $1,500 cap.

Fuel Cells Residential Fuel Cell and microturbine system
Efficiency of at least 30% and must have a capacity of at least 0.5 kW.
30% of the cost, up to $1500 per .5 kW of power capacity
Must be placed in service by December 31, 2016.

Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

Not limited to $1,500 cap.

Cars Hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles Based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models
There is a 60,000 vehicle limit per manufacturer before a phase-out period begins. Toyota and Honda have already been phased out. Credit is still available for Ford, GM and Nissan.

For more information visit: Fueleconomy.gov

Use IRS Form 8910 for hybrid vehicles purchased for personal use.

Use IRS Form 3800 for hybrid vehicles purchased for business purposes.

Plug-in hybrid electric vehicles $2,500-$7,500
The first 250,000 vehicles sold get the full tax credit (then it phases out like the hybrid vehicle tax credits).

Effective January 1, 2009.

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.

⁵Biomass Fuel means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.

The IRS defines "placed in service" as when the property is ready and available for use.

Home Energy Tax Credit Info

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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	30% 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
Roofing	Metal Roofs, Asphalt Roofs	ENERGY STAR qualified	30% of cost, up to $1,500²	All ENERGY STAR labeled metal and asphalt roofs qualify for the tax credit. Must be expected to last 5 years OR have a 2 year warranty.
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
HVAC	Central A/C	Split Systems: EER >=13 SEER >= 16 Package systems: EER >= 12 SEER >= 14	30% of cost, up to $1,500²	For a list of qualified products, go to the Consortium for Energy Efficiency product directory , click on the Air Conditioners and in the "CEE Tier" enter "Residential Advanced Tier 3." Note - not all ENERGY STAR products will qualify for the tax credit. ENERGY STAR Spec: Split Systems: EER >= 12 SEER >= 14.5 Package systems: EER >= 11 SEER >= 14
Air Source Heat Pumps	Split Systems: HSPF >= 8.5 EER >= 12.5 SEER >= 15 Package systems: HSPF >= 8 EER >= 12 SEER >= 14	30% of cost, up to $1,500²	Note - not all ENERGY STAR products will qualify for the tax credit. ENERGY STAR Spec: Split Systems: HSPF >= 8.2 EER >= 12 SEER >= 14.5 Package systems: HSPF >= 8 EER >= 11 SEER >= 14
Natural Gas or Propane Furnace	AFUE >= 95	30% of cost, up to $1,500²	For a list of qualifying products go to the Gas Appliance Manufacturing Association Not all ENERGY STAR products will qualify for the tax credit. ENERGY STAR Spec: Gas Furnaces: AFUE >= 90 Oil Furnaces: AFUE >= 85 Boilers: AFUE >= 85
Oil Furnace	AFUE >= 90	30% of cost, up to $1,500²
Gas, Propane, or Oil Hot Water Boiler	AFUE >= 90	30% of cost, up to $1,500²
Advanced Main Air Circulating Fan	No more than 2% of furnace total energy use	30% of cost, up to $1,500²	For a partial list of qualifying products go to the Gas Appliance Manufacturing Association
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	30% of the cost - NOT subject to $1,500 cap	All ENERGY STAR labeled geo-thermal heat pumps qualify for the tax credit. Use IRS Form 5695 Must be "placed into service" between Jan. 1, 2008-Dec. 31, 2016.
Water Heaters	Gas, Oil, Propane Water Heater	Energy Factor >= 0.82 or a thermal efficiency of at least 90%.	30% of cost, up to $1,500²	Not all ENERGY STAR gas storage and gas condensing water heaters will qualify for the tax credit. All ENERGY STAR gas tankless models will qualify. ENERGY STAR criteria: Gas Storage: Energy Factor >= .62 Gas Tankless: Energy Factor >= 0.82 Gas Condensing: Energy Factor >= 0.8 For a partial list of qualifying products go to the Gas Appliance Manufacturing Association
Electric Heat Pump Water Heater	Same criteria as ENERGY STAR: Energy Factor >= 2.0	30% of cost, up to $1,500²	All ENERGY STAR qualified electric heat pump water heaters qualify for the tax credit.
Biomass Stove	Biomass Stove	Stove which burns biomass fuel⁵ to heat a home or heat water. Thermal efficiency rating of at least 75% as measured using a lower heating value.	30% of cost, up to $1,500²
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).	30% of cost, up to $2,000	Use IRS Form 5695 Must be placed in service before December 31, 2016.
Photovoltaic Systems	Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.	30% of cost	Use IRS Form 5695 Must be placed in service before December 31, 2016.
Small Wind Energy Systems	Residential Small Wind Energy Systems		30% of the cost	Must be placed in service by December 31, 2016. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010. Not limited to $1,500 cap.
Fuel Cells	Residential Fuel Cell and microturbine system	Efficiency of at least 30% and must have a capacity of at least 0.5 kW.	30% of the cost, up to $1500 per .5 kW of power capacity	Must be placed in service by December 31, 2016. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010. Not limited to $1,500 cap.
Cars	Hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles		Based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models	There is a 60,000 vehicle limit per manufacturer before a phase-out period begins. Toyota and Honda have already been phased out. Credit is still available for Ford, GM and Nissan. For more information visit: Fueleconomy.gov Use IRS Form 8910 for hybrid vehicles purchased for personal use. Use IRS Form 3800 for hybrid vehicles purchased for business purposes.
Plug-in hybrid electric vehicles		$2,500-$7,500	The first 250,000 vehicles sold get the full tax credit (then it phases out like the hybrid vehicle tax credits). Effective January 1, 2009.