Federal Tax Credits for Consumer Energy Efficiency
If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit. Below you will find an overview of the federal tax credits for energy efficiency.
Please note, not all ENERGY STAR qualified products qualify for a tax credit. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.
What You Need to Know
What is included in the Tax Credit?
- Tax Credit:
- 30% of cost up to $1,500
- Expires:
- December 31, 2010
- Details:
- Must be an existing home & your principal residence. New construction and rentals do not qualify.
Biomass
stoves burn biomass fuel to heat a home or
heat water. Biomass fuel includes agricultural crops
and trees, wood and wood waste and residues
(including wood pellets), plants (including aquatic
plants), grasses, residues, and fibers.
Heat
pumps offer an energy-efficient alternative to
furnaces and air conditioners in moderate climates.
Like your refrigerator, heat pumps use electricity
to move heat from a cool space into a warm, making
the cool space cooler and the warm space warmer.
During the heating season, heat pumps move heat from
the cool outdoors into your warm house; during the
cooling season, heat pumps move heat from your cool
house into the warm outdoors. Because they move heat
rather than generate heat, heat pumps can provide up
to 4 times the amount of energy they consume.
The
best way to find tax credit eligible CACs is to ask
your HVAC Contractor (Heating Ventilation and Air
Conditioning). To verify tax credit eligibility, ask
your HVAC contractor to provide the
These
are heating units that use water circulated
throughout the home in a system of baseboard heating
units, radiators, and/or in-floor radiant tubing.
A
furnace uses the combustion of fuel and air to
create heat.
A
furnace uses the combustion of fuel and air to
create heat.
Adding
adequate insulation is one of the most
cost-effective home improvements that you can do.
Qualified
roof products reflect more of the sun's rays, which
can lower roof surface temperature by up to 100F,
decreasing the amount of heat transferred into your
home.
Water
heating can account for 14%–25% of the energy
consumed in your home.
Water
heating can account for 14%–25% of the energy
consumed in your home.
Energy
efficient windows, doors and skylights can reduce
energy bills.
A
less expensive approach to replacing old
windows/doors, is to use storm windows to improve
energy efficiency. When installed in combination
with older, less efficient window/door, storm
windows/doors can enhance efficiency by creating
another barrier between the interior of you home and
the weather outside.- Tax Credit:
- 30% of cost with no upper limit
- Expires:
- December 31, 2016
- Details:
- Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
Geothermal
heat pumps are similar to ordinary heat pumps, but
use the ground instead of outside air to provide
heating, air conditioning and, in most cases, hot
water. Because they use the earth's natural heat,
they are among the most efficient and comfortable
heating and cooling technologies currently
available.
A
wind turbine collects kinetic energy from the wind
and converts it to electricity that is compatible
with a home's electrical system.
Solar
water heaters come in a wide variety of designs, all
including a collector and storage tank, and all
using the sun's thermal energy to heat water. Solar
water heaters are typically described according to
the type of collector and the circulation system.
Solar
Panels or Photovoltaic Systems are solar cells that
capture the heat from the sun and convert it
directly into electricity.- Tax Credit:
- Credit Details: 30% of the cost, up to $500 per .5 kW of power capacity
- Expires:
- December 31, 2016
- Details:
- Existing homes & new construction qualify. Must be your principal residence. Rentals and second homes do not qualify.