Energy Tax Credits

energy tax credits, solar heating systems, federal tax credits, state tax credits, energy efficient








Energy Tax Credits

Thinking of Going Green? With these Federal and State tax credits, you may be able to justify upgrading before the credits expire.

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Energy Tax Credits:

Last and certainly not least, consider the tax implications of chosen systems. There are a lot of tax credits now available for many solar systems.

These include credits on the Federal, State, Local and Utility Company levels. Be sure to check them out thoroughly as to the effective dates, criteria that has to be met to qualify and phase in and phase out dates.

In order to reduce our dependence on foreign oil, it will be a pretty sure bet that green energy systems will not only continue to get some great energy tax credits - the credits will get even more attractive to the homeowner.

Building Small Doesn't Mean Cramped

Energy Tax Credits

Energy Tax Credits: Existing Homes

The Federal Energy Tax Credits are set up into two separate categories.

The first is for existing homes and the second is for new construction.

Existing Home Tax Credit: To qualify for a tax credit, you must make improvements to your "principal residence". A rental or second home will not qualify.

Your Principal Residence: This is the home where you live most of the time. A temporary absence due to special circumstances, such as illness, education, business, military service, or vacation will not change your principal residence.

Tax Credit Expiration: Also, the tax credits for existing homes is set to expire on December 31, 2010. We are hoping that this date will be extended as this tax credit is really helping the green movement and weaning us off or dependence of foreign oil.

Amount of the Tax Credit: The tax credit for existing homes is 30% of the cost of the equipment, and the credit maximum is $1,500.00. This can be spread over 2 years, but you still cannot exceed the $1,500.00 total.

Note: The $1,500 maximum does not apply to geothermal heat pumps, solar water heaters, solar panels, fuel cells, and wind generators.

These are all eligible for a 30% tax credit with no upper limit. However, the tax credit for fuel cells is limited to $500 per .5 kW of power capacity.

The tax credit with no upper limit is completely separate from the one limited to $1,500 - so you can get both.

For example, you can get $1,500 back for new windows, and $3,000 back for a new geothermal heat pump - for a total tax credit of 4,500.

Photovoltaic Panels

Energy Tax Credits: Biomass Stoves Qualify

How To Apply: First you need to be sure you select equipment and systems that qualify for the tax credit. Just a word of warning here: Not all Energy Star rated equipment a appliances qualify for a tax credit. You would be wise to browse the list before buying anything.

Energy Tax Credits: Existing Homes - Qualifying Products

Biomass Stoves: 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.

Heating, Ventilating and Air-Conditioning Systems: This credit includes several upgrades to your existing systems including: Central Fan Upgrade; Upgrading to a more efficient furnace; Upgrading to a more efficient central air-conditioning system.

Adding Insulation: This tax credit will allow you to add most any type of insulation to your home. It does not include installation costs, but you can install it yourself and still get the credit.

Highly Reflective Roofing Materials: If you re-roof your home do it with a material that is rated to give you high reflectivity and you will capture this tax credit. It does not cover installation costs.

High Efficient Water Heater: Install a water heater that has an Energy Factor ≥ 0.82 OR a thermal efficiency of at least 90%, and you can claim the tax credit. This credit is also available if you install a qualifying Heat Pump Water Heating system. Installation costs can be included in the tax credit.

Windows and Doors: When you install new windows or exterior doors, install products that meet these minimum requirements and you can claim the tax credit. U factor <=0.30 SHGC <=0.30. Installation costs cannot be claimed.

Organic Vegetables

Energy Tax Credits: New and Existing Homes

Energy Tax Credits: New and Existing Homes

New Home Tax Credit: Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.

Your Principal Residence: This is the home where you live most of the time. A temporary absence due to special circumstances, such as illness, education, business, military service, or vacation will not change your principal residence.

Tax Credit Expiration: Also, the tax credits for this tax credit is set to expire on December 31, 2016. So this one is set to be in place for another 6 plus years and will unsubtly be extended beyond that.

Fuel Cells

Energy Tax Credits: Photovoltaic Solar Cells Qualify.

Amount of the Tax Credit(s): 30% of cost with no upper limit. So this gives us a vast and fertile field of green products with which we can reap the benifit's of the tax credits.

The government is offering great tax credits for these systems to try to kick-start this up and coming technology.

How To Apply: First you need to be sure you select equipment and systems that qualify for the tax credit. Just a word of warning here: Not all Energy Star rated equipment a appliances qualify for a tax credit. You would be wise to browse the list before buying anything.

Energy Tax Credits: New and Existing Homes - Qualifying Products

Geothermal Heat Pump Systems: 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.

There are basically three types of systems available: Open loop; Closed loop; and direct expansion. You will need to meet certain efficiency standards for each system in order to qualify:

Open Loop: EER ≥ 16.2 COP ≥ 3.6
Closed Loop: EER >= 14.1 COP >= 3.3
Direct Expansion: EER ≥ 15 COP ≥ 3.5

Small or Residentially Sized Wind Turbines: A wind turbine collects kinetic energy from the wind and converts it to electricity that is compatible with a home's electrical system.

Requirements: Must have a nameplate capacity of no more than 100 kilowatts. Tax Credit includes installation costs.

Smart Home Technology

Energy Tax Credits: Wind Turbines Qualify

Solar Water Heaters: 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.

Requirements: At least half of the energy generated by the "qualifying property" must come from the sun.

The system must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.

Note: The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling. Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement. Tax Credit includes installation costs.

Solar Panels (Photovoltaic Systems): Solar Panels or Photovoltaic Systems are solar cells that capture light energy from the sun and convert it directly into electricity.

Requirements: Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.

Energy Tax Credits: Additional Information:

Federal Tax Incentives: The US Department of Energy, through its Energy Star Program, has an extensive listing of qualifying systems for energy tax credits. Their web site is located at: Home Energy Tax Credits.

State Tax Incentives: For state incentives you can go to the DSIRE web site which was established in 1995 and funded by the U.S. Department of Energy, DSIRE is an ongoing project of the N.C. Solar Center and the Interstate Renewable Energy Council. They keep the most recent database of state by state energy tax credit information.

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