NOTE: Tax credits that were 30% up to $1,500 EXPIRED on December 31, 2010. New tax credits were passed, but at lower levels.
Have the tax credits been extended for 2011?
On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This law extends the tax credits for energy efficiency into 2011, BUT at lower levels. The levels revert back to those in effect in 2006 and 2007, which were 10% of the cost of the improvement, up to $500, with a $200 max for windows, and several other set maximums.
Highlights:
· $500 lifetime limit. If you got over $500 in these tax credits from 2006 - 2010, you are not eligible for anything more.
· 10% up to $500 for insulation, roofs, and doors.
· Windows capped at $200, but qualification now ENERGY STAR
· Furnace and boilers capped at $150, and all furnaces and boilers must meet 95 AFUE
· $50 for advanced main air circulating fan
· $300 for air conditioners, air source heat pumps, water heaters, and biomass stoves
Can renters get the tax credit?
No, you can only get the tax credit if you own the home and you live in it.
You can not get the tax credit for rental properties either.What is included in the Tax Credit?
Tax Credit:
10% of cost up to $500 or a specific amount from $50 - $300
Expires:
December 31, 2011
Details:
Must be an existing home & your
principal residence. New construction and rentals do not qualify.
Biomass Stoves
Biomass stoves burn biomass fuel to heat a home or heat water. Biomass fuel includes agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.
Tax Credit Amount: $300
Requirements
Thermal efficiency rating of at least 75%
Air Source Heat Pumps
Heat pumps offer an energy-efficient alternative to furnaces and air conditioners in moderate climates. Like your refrigerator, heat pumps use electricity to move heat from a cool space into a warm, making the cool space cooler and the warm space warmer. During the heating season, heat pumps move heat from the cool outdoors into your warm house; during the cooling season, heat pumps move heat from your cool house into the warm outdoors. Because they move heat rather than generate heat, heat pumps can provide up to 4 times the amount of energy they consume.
Tax Credit Amount: $300
Requirements
Split Systems:HSPF ≥ 8.5EER ≥ 12.5SEER ≥ 15
Package systems:HSPF ≥ 8 EER ≥ 12 SEER ≥ 14
Central Air Conditioning (CAC)
The best way to find tax credit eligible CACs is to ask your HVAC Contractor (Heating Ventilation and Air Conditioning). To verify tax credit eligibility, ask your HVAC contractor to provide the
Manufacturer Certification Statement for the equipment you plan to purchase. Or, search the Manufacturer's website.
Tax Credit Amount: $300
Requirements
Split Systems: SEER ≥ 16 EER ≥ 13
Package systems:SEER ≥ 14 EER ≥ 12
See definitions.
More Information
How to applyGas, Propane, or Oil Hot Water Boiler
These are heating units that use water circulated throughout the home in a system of baseboard heating units, radiators, and/or in-floor radiant tubing.
Tax Credit Amount: $150
Requirements
AFUE ≥ 95
Tax Credit includes installation costs.
See definitions.
More Information
How to applyNatural Gas, Propane or Oil Furnace
A furnace uses the combustion of fuel and air to create heat.
Tax Credit Amount: $150
Requirements
AFUE ≥ 95
Insulation
Adding adequate insulation is one of the most cost-effective home improvements that you can do.
Tax Credit Amount: 10% of the cost, up to $500
Requirements
Typical bulk insulation products can qualify, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place.
Products that air seal (reduce air leaks) can also qualify, as long as they come with a Manufacturers Certification Statement, including:
Weather stripping
Spray foam in a can, designed to air seal
Caulk designed to air seal
House wrap
Tax Credit does NOT include installation costs.
But, you can install the insulation/home sealing yourself and get the credit.
See definitions.
Roofs (Metal & Asphalt)
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.
Tax Credit Amount: 10% of the cost, up to $500
Requirements
"Metal roofs with appropriate pigmented coatings" and "asphalt roofs with appropriate cooling granules" that also meet ENERGY STAR requirements.
Tax Credit does NOT include installation costs.
Water Heaters (non-solar)
Gas, Oil, Propane Water Heater
Water heating can account for 14%–25% of the energy consumed in your home.
Tax Credit Amount: $300
Requirements
Energy Factor ≥ 0.82 OR a thermal efficiency of at least 90%.
See definitions.
More Information
How to applyElectric Heat Pump Water Heater
Water heating can account for 14%–25% of the energy consumed in your home.
Tax Credit Amount: $300
Requirements
Energy Factor ≥ 2.0
Tax Credit:30% of cost with no upper limitExpires:December 31, 2016Details:Existing homes & new construction qualify. Both
principal residences and second homes qualify. Rentals do not qualify.
Windows, Doors, Skylights
Energy efficient windows, doors and skylights can reduce energy bills.
Tax Credit Amount: 10% of the cost, up to $500, but windows are capped at $200.
Requirements
Must be ENERGY STAR qualified.
You do not have to replace all the windows/doors/skylights in your home to qualify. And it doesn't need to be a replacement either - installing a new window where there wasn't one previously (like in an addition) qualifies.
Tax Credit does NOT include installation costs.
Geothermal Heat Pumps
Geothermal heat pumps are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. Because they use the earth's natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available.
Requirements
Closed Loop: EER ≥ 14.1 COP ≥ 3.3
Open Loop: EER ≥ 16.2 COP ≥ 3.6
Direct Expansion: EER ≥ 15 COP ≥ 3.5
Tax Credit includes installation costs.
See definitions.
Small Wind Turbines (Residential)
A wind turbine collects kinetic energy from the wind and converts it to electricity that is compatible with a home's electrical system.
Requirements
Must have a nameplate capacity of no more than 100 kilowatts.
Tax Credit includes installation costs.
Solar Energy Systems
Solar Water Heaters
Solar water heaters come in a wide variety of designs, all including a collector and storage tank, and all using the sun's thermal energy to heat water. Solar water heaters are typically described according to the type of collector and the circulation system.
Requirements
At least half of the energy generated by the "qualifying property" must come from the sun. The system must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.
Note: The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling.
Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.
Tax Credit includes installation costs.
More Information
How to applySolar Water Heater FAQAll ENERGY STAR Qualified solar water heaters qualify for the tax credit.Solar Panels (Photovoltaic Systems)
Solar Panels or Photovoltaic Systems are solar cells that capture light energy from the sun and convert it directly into electricity.
Requirements
Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.
Tax Credit:Credit Details: 30% of the cost, up to $500 per .5 kW of power capacityExpires:December 31, 2016Details:Existing homes & new construction qualify. Must be your
principal residence. Rentals and second homes do not qualify.
Fuel Cells (Residential Fuel Cell and Microturbine System)
Fuel cells are an important enabling technology for the hydrogen economy and have the potential to revolutionize the way we power our nation, offering cleaner, more-efficient alternatives to the combustion of gasoline and other fossil fuels.
Requirements
Efficiency of at least 30% and must have a capacity of at least 0.5 kW.
Tax Credit includes installation costs.
