federal tax credits for energy efficient products

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