Energy Tax Credits

HOME ENERGY TAX CREDITS

It is not to early to start thinking about saving money on next years taxes. If you are building or making home improvements in the next couple of years, don’t miss out on the new energy tax credits. Go green and get paid to do it.

It really is time to replace many older HVAC products with newer more energy efficient models. Technology has improved, and water heaters, heat pumps, and other home comfort items have been dramatically improved. Replacing older units with newer ones will not only give you a tax break, but it will also save you money on your monthly utility bills as well.

One customer recently replaced his old attic insulation with spay on foam insulation, and his heating bills went down almost $50 dollars a month, and he is very excited to see how his summer utility bills will fare as well.

Even small changes can make a difference. Installing ceiling fans can help you feel more comfortable in your house, while allowing you to decrease your thermostat settings.

Saving money is the just beginning of using better more efficient home comfort products. You will also be doing your part to help save our planet, by using less energy. Call around before you haul your old AC to the dump, and see if a salvage yard may want it, and save some space in the landfills too.

energy tax credit

What do the new energy tax credits mean?

by Lisa Zapalac

The recent stimulus package included an expanded bill for a wide range of tax credits to homeowners and businesses who made home improvement or commercial developments with energy efficiencies.

You can qualify for up to $1,500.00 in tax credits for those projects. Just to recap: Type: Home improvements Time Frame: January 1, 2009 through December 31, 2010 Must be: your primary residence Maximum tax credit: $1,500.00 The only exceptions to the cap are solar water heaters, geothermal heat pumps and solar panels. Documentation you need: Manufactures Certification Statement

If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, solar water heaters, fuel cells, etc., but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.

Insulation, Windows, Sealing: Homeowners can get credits for energy improvements to their homes, such as windows, insulation, and envelope and duct sealing.

Home Heating & Cooling Equipment: Homeowners can get credits for installing efficient air conditioners and heat pumps; gas or oil furnaces and furnace fans; and gas, oil, or electric heat pump water heaters in new or existing homes.

On-Site Renewables: Credits are available for qualified solar water heating and photovoltaic systems, small wind and geothermal heat pump systems.

Home Heating & Cooling Equipment: Purchasers of highly efficient heating, cooling, and water heating equipment can take tax credits of 30% of installed cost for purchasing qualifying equipment. There is a $1,500 cap on the credit per home, including the amount received for insulation, windows, air and duct sealing.

Qualifying Equipment includes: high efficiency gas, oil and propane furnaces, AFUE 95 or higher; high efficiency central air conditioning units (SEER of 16 or greater), geothermal heat pumps, high efficiency fans for heating and cooling systems (using no more than 2% of system energy use), high efficiency water heaters (Energy Factor of at least 0.82 or thermal efficiency of at least 90%), including heat pump water heaters (energy factor of at least 2.0).

Talk with the manufacturer, installer or retailer before purchasing to ensure your product meets the qualifications.

Find additional information at these locations:

U.S. Department of Energy Energy Savers

American Council for an Energy-Efficient Economy

U.S. Department of Energy (heat pumps)

U.S. Department of Energy (cooling systems)

American Council for an Energy-Efficient Economy

U.S. Department of Energy

About the Author

Find out more about Texas Housing Market. Know your market as your begin to look for homes in Texas.

2009 Tax Credit — Green Building Ideas

President Bush had this energy tax credit in place, which was to end in 2007, but was extended.