Qualifying Improvements
IRS Notice 2006-26
|
NEW Rules of Eligibility for the Federal Tax Credits for Energy Efficiency (Replacement Windows, Doors, and Insulation).
 The new Energy Tax Credit included in the Stimulus and Recovery package, signed into law February 17, 2009, raises the level of credits for windows, doors and skylights to 30%, and increases the lifetime cap to $1500.
Qualifying windows and doors now must have a combination of a less than .30 U-Value and a .30 SHGC. As in the previous versions of Energy Tax Credits (Sec. 25c of Internal Revenue Code) the installation of the components (windows, doors and skylights) is excluded.
Additional sections of 25c allow deduction of the costs of insulation, among which are costs associated with insulating around windows and doors. The new bill adds the condition that the 2009 Residential Energy Code compliance be added to insulation requirements if the code identifies insulation targets or materials substantially different than previously.
As stated in some of the various State Energy Code interpretations, Air infiltration accounts for substantial heat loss, heat gain and moisture migration in a building. Proper sealing around all doors, windows and other envelope penetrations through the walls, ceiling and foundation is as important to energy code compliance as are proper insulation R-Values and component U-factors.
AWDI Energy Tax Credit Program, whereby AWDI methods identify certain portions of the 5 steps to window installation, as insulation, the costs associated with those components and steps will still comply with the requirements of the amended 25c and will now have a cap of 30% of the cost and an upper limit of $1500.00.
WINDOWS, DOORS AND INSULATION PURCHASES
MADE IN 2009 and 2010 WILL QUALIFY FOR
ENERGY TAX CREDITS, AGAIN.
Federal Tax Credits for Energy Efficiency includes:
* Tax Credits for Consumers
- Home Improvements
- Cars
- Solar Energy Systems
- Fuel Cells
* Tax Credits for Home Builders
* Tax Deductions for Commercial Buildings
* For More Information
**Please note, not all ENERGY STAR qualified homes and products qualify for a 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. If, for whatever reason, you decide not to purchase a product covered by the tax credit, you may still consider purchasing an ENERGY STAR product. 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.
Tax Credits for Consumers:
Home Improvements
Home Improvement tax credits are available for home improvements "placed in service" from January 1, 2009 through December 31, 2010. Any qualified home improvements made in 2008, are not eligible for the tax credit.
Tax credits are available for insulation, replacement windows, water heaters, and certain high efficiency heating and cooling equipment. See chart. is $500 during the three year period of the tax credit (2006, 2007 & now 2009-2010).
If you are building a new home, you do not qualify for the tax credits for "eligible building envelope components" (windows, doors, insulation, roofs) or "qualified energy property" (HVAC & non-solar water heaters). However, the tax credit for photovoltaics, solar water heating, and fuel cells is available for homeowners building new homes. More.
The Internal Revenue Service (IRS) guidance for consumers: IRS Notice 2006-26 PDF Exit ENERGY STAR.
Efficient Cars
Tax credits are available to buyers of hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles. The tax credit amount is based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models. These credits are available for vehicles placed in service starting January 1, 2006. For hybrid and diesel vehicles made by each manufacturer, the credit will be phased out over 15 months starting after that manufacturer has sold 60,000 eligible vehicles. For vehicles made by manufacturers that have not reached the end of the phase-out, the credits will end for vehicles placed in service after December 31, 2010. See the IRS Website for updated information Exit ENERGY STAR.
Solar Energy Systems
Tax credits are available for qualified solar water heating and photovoltaic systems. The credits are available for systems "placed in service" from January 1, 2006 through December 31, 2016. The tax credit is for 30% of the cost of the system, up to $2,000. This credit is not limited to the $500 home improvement cap.
|
   |
