Tax Credits for Energy Efficient Homes

If you install certain energy efficient products like heating and cooling systems, insulation, roof, doors and windows you can receive a sizable tax break.

Your tax break for installing any of these energy efficient products between January 1, 2009 and December 31, 2010 will be to 30% of the total cost or up to 1,500.00 dollars per item. Below is a full break down of the government approved qualifying energy efficient products.

* New construction homes that install these do NOT qualify.
* Rental properties that install these do NOT qualify.
** The product must be installed on your primary residence.

Navigation of Qualifying Energy Efficient Products

1. Biomass Stoves
2. Advanced Main Air Circulating Fan
– 2.1 Air Source Heat Pumps
– 2.2 Central Air Conditioning
– 2.3 Gas, Propane and Water Boilers
– 2.4 Natural Gas, Propane Furnaces and Oil Furnaces
3. Gas, Oil, and Propane Water Heater
– 3.1 Electric Heat Pump Water Heater
4. Geothermal Heat Pumps
5. Wind Turbines
6. Solar Water Heaters and Photovoltaic Systems
7. Fuel Cells
8. Home Insulation
9. Metal and Asphalt Roofs
10. Windows, Doors and Skylights
11. How to Apply for Your Energy Efficient Tax Credit

1. Biomass Stoves
Biomass stoves use plants, grass, wood pellets and agricultural crops for fuel. Biomass stoves use this fuel to heat the home and water.

Requirements: The stove must have a thermal efficiency of at least 75% to qualify.

Heating Ventilating Air Conditioning (HVAC)

2. Advanced Main Air Circulating Fan
This is an energy efficient fan that blows the hot air from your furnace through your homes duct system.

Requirements: Your advanced main circulating fan has to use more that 2% of the furnace’s energy.

2.1 Air Source Heat Pumps
Heat pumps use electricity to move air around. When it’s hot outside a heat pump moves heat from inside your house to the outside. When it’s cold outside it does just the opposite moving heat from outside into your home. Since heat pumps move heat instead of generating it they can produce 4 times the energy they use.

Requirements for Split Systems:
HSPF ≥ 8.5
EER ≥ 12.5
SEER ≥ 15

Requirements for Package systems:
HSPF ≥ 8
EER ≥ 12
SEER ≥ 14

2.2 Central Air Conditioning (CAC)
Central air conditioners use a condenser and evaporator in cooperation with the forced air distribution system to cool and heat a house.

Requirements for Split Systems:
SEER ≥ 16
EER ≥ 13

Requirements for Package systems:
SEER ≥ 14
EER ≥ 12

2.3 Gas, Propane and Water Boilers
Homes that are older generally use these types of systems to heat them. Using baseboards, radiators and floor tubing they circulate water through the system to produce heat.

Requirements: AFUE ≥ 90

2.4 Natural Gas, Propane Furnaces and Oil Furnaces
Natural gas oil furnaces and propane furnaces use combustion to create fuel. Think of it as tiny safe explosions that produce heat.

Requirements for Natural Gas or Propane Furnace: AFUE ≥ 95

Requirements for Oil Furnace: AFUE ≥ 90

Non Solar Water Heaters

3. Gas, Oil, and Propane Water Heater
These are very simple and use either gas, oil or propane to heat your homes water supply.

Requirements: Energy Factor ≥ 0.82 OR a thermal efficiency of at least 90

3.1 Electric Heat Pump Water Heater
Electric heat pumps do exactly was the name says. They electricity to heat and pump water throughout your home.

Requirements: Energy Factor ≥ 2.0

4. Geothermal Heat Pumps
Geothermal heat pumps use the earths natural heat properties from the ground. This is the most efficient heating and cooling system for a home.

Requirements for Closed Loop:
EER ≥ 14.1
COP ≥ 3.3

Requirements for Open Loop:
EER ≥ 16.2
COP ≥ 3.6

Requirements for Direct Expansion:
EER ≥ 15
COP ≥ 3.5

5. Wind Turbines
Wind turbines use kinetic energy collected from the wind and converts it into electricity. This is not a cost effective solution for most homes.

Requirements: Nameplate capacity of no more than 100 kilowatts

6. Solar Water Heaters and Photovoltaic Systems
Solar water heaters can vary greatly but all use solar panels to channel the suns energy to heat water.

Requirements for Solar Water Heaters: System must be certified by the Solar Rating and Certification Corporation and at least half of the energy generated must come from the sun.

Requirements for Photovoltaic Systems: Provide electricity for the residence and meet electrical/fire requirements.

7. Fuel Cells
Think of a fuel cell as a big battery that uses hydrogen gas to create energy. Fuel cells are probably the most uncommon use of residential energy at this time.

Requirements: Efficiency of at least 30% and has a capacity of at least 0.5 kW.

8. Home Insulation
Insulation is sandwiched in between your homes walls to prevent hot/cool air from escaping/entering.

Requirements: Bulk insulation such as batts, rolls, blow in fibers, rigid boards, expanding spray, and pour in place are OK.

9. Metal and Asphalt Roofs
Generally a roof can last up to 30yrs before needing to be replaced. There are many roofs that qualify for the energy efficient tax credit.

Requirements: This one is tricky follow this link and download the Excel or PDF file for the full list.

10. Windows, Doors and Skylights
Using energy efficient products that allow light and air to enter your home can have a major impact of your utility bill.

U factor <=0.30
SHGC <=0.30

Requirements for Storm Windows and Doors:
U-factor and SHGC of 0.30 or below
Must meet the IECC