Federal Tax Incentives for
Energy Efficient Homes

The American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act of 2009, signed on February 17th, 2009 by Barack Obama, extends and expands on already existing renewable energy and home energy efficiency credits. The bill removed caps on renewable energy technologies such as small wind and geothermal heat pumps and increased the maximum amount on other energy efficient improvements. Our company, Energy Environmental Corporation , is a company specializing in home energy efficiency, including the design and installation of integrated renewable energy systems for residential homes. Many homeowners are confused about the incentives available to them, so we have outlined the highlights of the new economic stimulus bill followed by tables containing specific details about the new federal tax incentives.

Renewable Energy System Credits

Tax credits are available for 30% of the cost, with NO CAP through 2016 for:

Home Energy Efficiency Credits

Tax credits are available for 30% of the cost, with a maximum of $1,500 through 2010 (existing homes only).

  • Insulation and Air Sealing
  • Windows and Doors
  • Roofing
  • Conventional HVAC

Renewable Energy Systems


For more information regarding renewable energy system options for your home, please contact us.

Geothermal Heat Pumps


Tax Incentive Criteria
Federal Tax Credit
Details

Energy Star Qualified

Closed Loop:
EER >= 14.1 COP >= 3.3

30% of total system cost

NO CAP

Must be "placed into service" between January 1st, 2008 - December 31st, 2016.

IRS Tax Form 5695


Solar Hot Water Systems


Tax Incentive Criteria
Federal Tax Credit
Details

Homeowners can only claim rebate for solar hot water system, not backup system.

The systems must be certified by the Solar Rating and Certification Corporation (SRCC).

30% of total system cost

NO CAP

Must be "placed into service" before December 31st, 2016.

IRS Tax Form 5695


Small Residential Wind Systems


Tax Incentive Criteria
Federal Tax Credit
Details

Small wind turbines with rated capacities of 100 kilowatts or less

30% of total system cost

NO CAP

Must be "placed into service" before December 31st, 2016.

Use IRS Tax Form 5695 (version 2009). This will be available in late 2009 or early 2010.



Solar Photovoltaics (Solar Panels)


Tax Incentive Criteria
Federal Tax Credit
Details

Photovoltaic systems must provide power to residence claiming the credit

30% of total system cost

NO CAP

Must be "placed into service" before December 31st, 2016.

IRS Tax Form 5695



Other Energy Efficiency Improvements


Energy efficiency improvements below are subject to a $1,500 maximum per homeowner for all improvements combined.

Insulation


Tax Incentive Criteria
Federal Tax Credit
Details

Meets 2009 IECC & Amendments

30% up to $1500 max


Primary function is insulation. For example, vapor retarders are covered, siding does not qualify.

Must have at least a two year warranty.

IRS Tax Form 5695



Window and Doors


Tax Incentive Criteria
Federal Tax Credit
Details

Visit Energy Star Federal Incentives for complete details.

30% up to $1500 max

$200 Cap removed


Not all ENERGY STAR labeled windows, doors, and skylights qualify for tax credit.

IRS Tax Form 5695



Conventional HVAC


Tax Incentive Criteria
Federal Tax Credit
Details

Central A/C, Air source heat pumps, Natural Gas or Propane Furnace, Gas, Propane, or Oil hot water boiler, Advanced Main Air Circulating Fan

30% up to $1500 max


Visit Energy Star Federal Incentives for complete details.

IRS Tax Form 5695



Roofing


Tax Incentive Criteria
Federal Tax Credit
Details

Energy Star qualified Metal and Asphalt Roofs

30% up to $1500 max


Visit Energy Star Federal Incentives for complete details.

IRS Tax Form 5695



More Links and Information about Energy Tax Rebates