Making Sense Of The 2009 Tax Credits
- Energy efficiency tax credits have been raised from 10% of cost to 30%
- The maximum tax credit has been raised from $500 to $1500 on individual efficiency upgrades
- More expensive upgrades, such as solar panels, solar water heaters, and geothermal pumps are not limited to their previous $1,500 maximum
- The $200 tax credit cap on efficient windows has been removed (however, the standards are also more stringent!)
SUMMARY OF TAX CREDITS FOR HOMEOWNERS
Tax Credit Specification
|Windows & Doors||Exterior Windows and Skylights||U factor <= 0.30|
SHGC <= 0.30
|30% of cost, up to $1,5002||Not allENERGY STAR labeled windows and skylightsqualify for tax credit.|
|Storm Windows||Meets IECC1in combination with the exterior window over which it is installed, for the applicable climate zone||30% of cost, up to $1,5002||Manufacturer Certification Statement3will 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 allENERGY 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|
|ENERGY STAR qualified||30% of cost, up to $1,5002||All ENERGY STAR 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, insulated siding does not qualify).|
Must be expected to last 5 years OR have a 2 year warranty
|HVAC||Central A/C||Split Systems:|
SEER >= 16
|30% of cost, up to $1,5002||For a list of qualified products, go to theConsortium for Energy Efficiency product directory , click on Air Conditioners, then in the “CEE Tier” enter “Residential Advanced Tier 3” for CAC Split Systems, and “Residential Tier 2″ for CAC Package Systems and ASHPs.|
Note — not all ENERGY STAR products will qualify for the tax credit. View ENERGY STAR criteria.
|Air Source Heat Pumps||Split Systems:|
HSPF >= 8.5
EER >= 12.5
SEER >= 15
|30% of cost, up to $1,5002|
|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. View ENERGY STAR criteria.
|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|
|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.|
All ENERGY STAR gas tankless water heaterswill qualify.
For a partial list of qualifying products go to the Air Conditioning, Heating, and refrigeration Institute (AHRI)
|Electric Heat Pump Water Heater||Same criteria as ENERGY STAR: Energy Factor >= 2.0||30% of cost, up to $1,5002||All ENERGY STAR electric heat pump water heatersqualify for the tax credit.|