Energy Tax Credit
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 taxpayer's principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes and rentals qualify)
- $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016
- Must have a Manufacturer Certification Statement to qualify
- For record keeping, save your receipts and the Manufacturer Certification Statement
- 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 geothermal heat pumps, photovoltaics, solar water heaters, small wind energy 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
What it means to the consumer:
- Packaged Systems are Coil and Condensing Unit.
- Split or Mini Split are a Wall Mounted Blower Unit With a Separate Outdoor Condensing Unit.
- Use this link for further explanation on Federal Tax Credits.
- Guaranteed Tax Credits apply to 15 SEER and up condensing units and
coils and 90% and 95% furnaces.
Boiled down, the federal government will provide a tax credit of up to $1500.00 specifically:
Total cost includes cost of the product + installation up to a $1,500
maximum cap per homeowner for all combined improvements made in 2009
and 2010. A furnace or air conditioner can only consist of 30% of that
$1500.00 total.
Example: You do $10,000 in upgrades that meet the above EPA guidelines
You can receive only $1500.00 tax credit. 30% of the tax credit or $500
maximum may be applied from A/C or furnace, or $1000.00 for both if both
are done and both meet the 2009-2010 EPA guidelines.
Epa guidelines as follows:
**Please note, not all ENERGY STAR qualified homes and products qualify for a tax credit. These tax credits are available for a number of products at the highest efficiency levels, which typically cost much more than standard products. If, for whatever reason, you decide not to purchase a product covered by the tax credit, you may still consider purchasing an ENERGY STAR product. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.