Energy Tax Credits for Homeowners 2010

02/17/10 - Did you know that the American Recovery and Reinvestment Act of 2009 provides energy incentives (tax credits) for individuals and businesses? That's right - the work that we've done for you in 2009 may help you get a break from the IRS if the type of work is included in their list of energy-saving building components.
Residential Energy Property Credit (Section 1121): The new law increases the energy tax credit for homeowners who make energy efficient improvements to their existing homes. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010.
The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems.
For more information, go to:
http://www.irs.gov/newsroom/article/0,,id=206871,00.html
http://www.irs.gov/pub/irs-news/n-09-53.pdf

But here's a summary:

(1) Eligible Building Envelope Components.

(a) An insulation material or system (including any vapor retarder or seal to limit
infiltration)

(b) An exterior window, skylight, or door (other than a storm window or storm

door) that meets or exceeds the prescriptive criteria established by the IECC for the
climate zone in which the window, skylight, or door is installed.

(c) A storm window that, in combination with the exterior window over which it is
installed, meets or exceeds the prescriptive criteria established by the IECC for the
climate zone in which such storm window is installed.
(d) A storm door that, in combination with a wood door that is assigned a default
U factor by the IECC, does not exceed the default U factor requirement assigned to
such combination by the IECC.

(e) Metal roofing

(f) Any asphalt roof that--
(i) has appropriate cooling granules that are specifically and primarily designed to
reduce the heat gain of a dwelling unit when installed on the dwelling unit, and
(ii) meets or exceeds either of the applicable Energy Star program requirements

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(2) Qualified Energy Property.

(a) An electric heat pump water heater that yields an energy factor of at least 2.0
in the standard Department of Energy (DOE) test procedure.

(b) An electric heat pump that has a heating seasonal performance factor (HSPF)
of at least 9, a seasonal energy efficiency ratio (SEER) of at least 15, and an energy
efficiency ratio (EER) of at least 13.
(c) A central air conditioner that achieves the highest efficiency tier that has been
established by the Consortium for Energy Efficiency, and is in effect on January 1,
2006.
(d) A natural gas, propane, or oil water heater that has an energy factor of at
least 0.80 or a thermal efficiency of at least 90 percent.
(e) A stove that uses the burning of biomass fuel to heat a dwelling unit or to heat
water for use in such a dwelling unit, and that has a thermal efficiency rating of at least
75 percent as measured using a lower heating value.
(f) A natural gas, propane, or oil furnace or hot water boiler that achieves an
annual fuel utilization efficiency rate of not less than 95.
(g) A fan that is used in a natural gas, propane, or oil furnace and has an annual
electricity use of no more than two percent of the total annual site energy use of the
furnace (as determined in the standard DOE test procedure).