Federal Tax Credits For
Energy Efficient Products
Not all ENERGY STAR products qualify for the 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.
• ENERGY STAR distinguishes energy efficient products which, may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time (5 yrs or less), without a tax credit.
Two Types of Tax Credits
• Energy Efficient Products – 30% up to $1,500
• Renewable energy products (solar, wind)– 30% with no upper limit
30% up to $1,500 total:
• Windows and Doors• Insulation• Roofs (Metal and Asphalt)• HVAC• Water Heaters (non-solar)• Biomass Stoves* in 2009 & 2010 * ONLY for existing homes, (NOT new
construction) that are your principle residence
Windows
• Through May 31, 2009: all ENERGY STAR windows qualify. Must be purchased by May 31, 2009.
• Beginning June 1, 2009: criteria is U-factor <= 0.3 and SHGC <= 0.3
Heating and Cooling Equipment
• Central Air Conditioner– SEER >=16, EER >=13
• Air Source Heat Pump– SEER >=15, EER >= 12.5, HSPF >= 8.5
• Natural Gas or Propane Furnace– AFUE >= 95
Leaky Air Ducts
$1,500 Total
• $1,500 tax credit is a total combined credit for ALL tax years (2009 & 2010).
• Basically you can spend up to $5,000 during this 2 year period on a single or multiple improvements, and get 30% (or $1,500) back as a tax credit.
• If you get the entire $1,500 credit in 2009, then you can't get anything additional in 2010.
Renewables
30% with no upper limit
30% with no upper limit:
• Geothermal Heat Pumps• Solar Panels• Solar Water Heater• Small Wind Energy Systems• Fuel Cells (up to $500 per .5 kW of power)*** through 2016 * for existing homes & new construction* does not have to be your principle residence,
vacation homes are eligible too**no vacation homes for fuel cells
Installation costs
ARE COVERED FOR:• HVAC (Heating,
Ventilation and Air Conditioning) systems
• Biomass Stoves • Water Heaters (including
solar) • Solar Panels • Geothermal Heat Pumps • Wind Energy Systems • Fuel Cells
ARE NOT COVERED FOR:• Windows • Doors • Insulation • Roofs
More Information:• energystar.gov/taxcredits• FAQs on energystar.gov
Home Star Retrofit Rebate Program
• Legislation (pending / not passed by congress yet)– Intent to stimulate job growth by creating homeowner demand – incentives scaled to promote home performance
• Silver Star– Homeowner incentives for prescriptive improvement – $1000 per measure; up to $3000 per household
• Gold Star– Homeowner incentives for performance based improvements – $3000 for a 20% reduction in energy use; $1000 for each
additional 5% reduction– Meets HPwES – existing program sponsors well positioned to be
rebate aggregators
Program structure
Contractor
Consumer
Start: Work is performed & consumer pays contractor/provider less the rebate amount
Rebate AggregatorQA Provider
Program Administrator (DOE)
1. Rebate Submitted
2. Rebate Submitted (batch)3. Rebate Paid (batch)
4. Rebate Reimbursed
5. Coordinate Inspection/Results
Inspectors6. In the field Inspections on
Performance &Check for Program
Requirements
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