Due to the Tax Relief Act of 2010, the tax credit for residential energy efficiency improvements has been amended and extended through December 31, 2011. This means that tax credits for energy efficiency improvements to the building envelope and energy efficient heating, cooling and water-heating equipment of existing homes are still available. The credits apply to only U.S. taxpayer homes used for their primary residence. These credits can be applied for the following items:
Ever since the federal income tax was introduced in 1913, the government has used the tax code to encourage homeownership. Now, as a result of the effort to reduce the federal deficit, the mortgage interest deduction is under fire. Proposed changes to the tax code would have a dramatic impact on home owners and would significantly reduce the value of this deduction.
The federal tax credit is in effect for furnaces purchased in 2009 and 2010. If the unit is installed in your principal residence between January 1, 2009 and December 31, 2010, you can qualify for a tax credit of up to 30% of the cost (including installation/labor costs). Tax credit is available in 2010 with the maximum of $1,500 for both years combined (ONLY for existing homes, NOT new construction, which is your principal residence).
Federal tax credits are in effect for 2009 and 2010. The purchase of a new central air conditioner may qualify for a credit. It must be installed in your principal residence between January 1, 2009 and December 31, 2010. The unit may qualify for a tax credit of up to 30% of the cost (including installation/labor costs), up to $1,500 for 2009 and 2010 combined. Tax credits are available in 2010 (ONLY for existing homes, NOT new construction, which is your principal residence).
Tax Credit for Insulation Featured
Insulation is generally one of the easiest improvements to implement and in colder climates provides a real ROI within a short time. 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 Manufacturer's Certification Statement. These products include weather stripping, spray foam in a can, caulk and house wrap.
Even if you purchase multiple products, you may only receive a maximum of $1,500 in federal tax credits over the 2-year period (2009 & 2010). Basically, you can get back 30% on a single or multiple qualifying purchase(s) of up to $5,000 as a tax credit during this 2-year period. Products must be for your principal residence that you own and live in. If you receive the entire $1,500 credit in 2009, then you will not qualify for an additional credit in 2010.
The tax credit for windows, doors and skylights is in effect for 2009 and 2010. The upgrade must be installed in your "principal residence" between January 1, 2009 and December 31, 2010. The credit will apply to 30% of the cost (not including installation/labor costs), up to $1,500. As always, consult with your CPA or accountant for specific details related to any tax program.
Federal tax credits for energy efficiency seem to abound. Does the same hold true for gas, oil and propane water heaters? Can I reap the benefits of a $1,500 tax credit as I install a more efficient water heater in my home?
Storage tank: At this time... there are NO residential storage tank water heaters that can qualify for the tax credit because none have the efficiency to meet the energy factor requirement set at .82.
What is and what isn't covered by the federal tax credit is a question that throws most people. It seems that everybody these days wants to go "green". But how in the world are they going to pay for it? Keeping up with all of the green choices is almost a full-time job. And trying to navigate the variety of options and opportunities available for property owners just takes way too much time. Fortunately, you've found Eco Evaluator.
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