Tax Credits for renewable energy and home improvements
I’ve been looking around for a good summary of what the tax incentives are and found a good resource on the energystar.gov website. I’ve included a few of the highlights below, be sure to visit http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#s1 for a detailed breakdown of the current incentives being offered.
The tax credit for these products is ONLY available for existing homes:
Windows/Skylights
Doors
Insulation
Roofs (metal and asphalt)
HVAC
Water Heaters (non-solar)
Bio-mass Stoves
There is a $2,000 tax credit for building a new energy efficient home, but it is ONLY available to “eligible contractors”; therefore, owner/builders may not receive the builder tax credit unless employed as eligible contractors. Home builders who qualify as eligible contractors are eligible for the $2,000 tax credit for a new energy efficient home that achieves 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements. At least 1/5 of the energy savings must come from building envelope improvements. There is also a $1,000 tax credit to the builder of a new manufactured home achieving 30% energy savings for heating and cooling over the 2004 IECC and supplements (at least 1/3 of the savings must come from building envelope improvements), or a manufactured home meeting the requirements established by EPA under the ENERGY STAR program.
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
$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 windmills which are not subject to this cap, and are in effect through 2016
must have a Manufacturer Certification Statement3 to qualify
for record keeping, save your receipts and the Manufacturer Certification Statement3
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.
A 30% tax credit (including labor and installation), with no upper limit, is available for consumers building new homes (through 2016) for:
Photovoltaics
Solar Water Heaters
Geothermal Heat Pumps
Small Wind Energy Systems
Fuel Cells
To qualify for the fuel cell credit, the new home you are building must be planned as your principle residence. The credit for photovoltaic, solar water heaters, geothermal heat pumps, and small wind energy systems does not have to be for your principal residence; so, rental units, second homes, etc… are all eligible. See the Instructions attached to 2008 IRS Form 5695 to help you further with this provision.
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