Eligible Tax Credits
Tax credits that expired in Dec 2007 are still good for improvements made during 2009.
Meaning qualified items purchased prior to January 1, 2009 are OK ---IF--- products are
“ placed into service ”* between January 1 – December 31, 2009.
Obamas New Tax Credits - 30% off the Top
The “Emergency Economic Stabilization Act of 2008” was signed into law on October 3, 2008. It is an extension to the Energy Policy Act of 2005, creating tax credits for energy efficient home improvements (doors, insulation, windows, HVAC, solar water heaters and tankless water heaters).
So even though you bought them a while ago, the law sees it as when they were actually “ placed into service* ”
Go install them in 2009 and get the credits.
*The IRS defines “ placed into service” as when the property is ready and available for use – this generally refers to the installation, not the purchase. (www.energystar.gov)
Eligible Tax Credits for Consumers
Home Energy-Efficiency Improvement
A one-time income tax credit of up to $500 in total for installing efficient new windows, insulation, doors, roofs and heating and cooling equipment in your home.
(Taxpayers who claimed some but not all of the $500 federal income tax credit for energy efficiency home improvements that was in effect in tax years 2006 and 2007 may utilize the unused portion in 2009.)
1.) Whole - Home Gas Tankless Water Heaters: Up to $300.
Stiebel Eltron DHC-E 20 Tankless Electric Water Heater
Geothermal Heat Pumps, Solar Photovoltaic Cells, Solar Water Heaters, Fuel Cells : 30% of cost, up to a maximum credit of $2,000. The heat pump must be “placed in service” between January 1, 2008 and December 31, 2016. Only ENERGY STAR geothermal heat pumps are eligible.
Geothermal Heat Pumps: A Guide for Planning and Installing
Performance of Solar Energy Converters: Thermal Collectors and Photovoltaic Cells
2.) Exterior windows, skylights, storm windows :
10% of the total cost, up to $200
3.) Insulation, exterior doors, roofs : 10% of the cost of the product (excluding installation), up to $500. Includes seals to limit air infiltration, such as caulk, weather stripping, and foam sealants, as well as storm doors.
Popular Mechanics Weatherproofing & Insulation
4.) Central air conditioner, heat pump, water heater, or bio gas (i.e., corn) stove : Up to $300 towards the full purchase price, including installation costs. Starting in 2009, geothermal heat pumps are instead eligible for a separate tax credit for 30% of the cost up to a maximum credit of $2,000.
5.) Furnace or boiler : Up to $150 towards the full purchase price, and/or $50 for an efficient air-circulating fan in a furnace, including installation cost.
6.) To be eligible for the federal tax credits: Whole-home tankless water heaters must have a minimum energy factor (EF) of 0.82. All ENERGY STAR qualified whole-home gas tankless and gas condensing models will qualify.
7.) Natural gas, propane, oil water heaters
must have an energy factor (EF) of at least 0.80 or a thermal efficiency of at least 90%. ENERGY STAR qualified high-efficiency gas storage water heaters will NOT qualify for the tax credit.
8.) Solar water heating must be placed into service before 12/31/2016. One-half of energy generated by “qualifying property” must come from the sun. Water must be used in the dwelling and may not be used for swimming pools or hot tubs. System must be certified by SRCC.
9.) Windows, doors, and insulation must meet the requirements for your region of the 2001 or 2004 International Energy Conservation Code, a model energy code for buildings. All ENERGY STAR windows qualify.
10.) Roofs must be metal with pigmented coatings or asphalt with cooling granules that meet ENERGY STAR requirements.
11.) Heating and cooling equipment must meet stringent efficiency requirements – not all ENERGY STAR products qualify.
*<Manufacturer’s Certification Statement> required For tax purposes, save your receipt and the Manufacturer’s Certification Statement Use IRS Form 5965
For more information on the federal tax credits visit ENERGY STAR at http://www.energystar.gov/index.cfm?c=products.pr_tax_credits .