Posted by: Rob Moody
Getting tax credits for building a green home or for giving your current home an energy upgrade is like having an extra birthday. Last October, our now lame-duck president signed H.R. 1424, the Emergency Economic Stabilization Act of 2008, after it passed the Senate 74-25 and the House 263-171. The bill includes federal tax credits for energy-efficient homes and those that make use of renewable energy, such as solar power. The credits kick in on Jan. 1, 2009. Here's a breakdown of the credits you’re eligible for if you build a green home or upgrade your home to the standards listed:
Existing-home tax credits (must be primary residence)
House part
Credit
To qualify
Exterior windows
10% of total cost, up to $200
Must be Energy Star or meet the 2000 International Energy Conservation Code (IECC)
Exterior doors
10% of the product cost, up to $500 (materials only)
Must be Energy Star or meet the 2000 IECC
Storm doors
Insulation
Roofing
Must be Energy Star
Central AC
$300 toward installation and equipment
Heat pump
Water heater
Biomass space heater or water heater
Furnace
$150 toward installation and equipment
Must have an annual fuel-utilization efficiency (AFUE) of 95% or more
Furnace fan
$50 for an efficient air-circulating fan
Boiler
Must have an annual fuel-utilization efficiency (AFUE) of 95% or mor
New-home tax credits (must completed by Dec. 31, 2009) Builders can receive a $2000 tax credit for homes that are 50% more efficient in heating and cooling than the 2004 IECC standards.
Renewable-energy tax credits
Energy source
Photovoltaics
30% for equipment and installation; no cap
Solar water systems
30% tax credit for equipment and installation; $2000 cap
Must supply at least 50% of the residence’s annual hot water and must be certified by the SRCC (does not apply to swimming pools or hot tubs)
Geothermal
Wind
$500 per 0.5kw; $4000 cap
Fuel-cell systems
$1500 per 0.5kw
Check back for my next entry, where I’ll supply some details about tax credits available in the states where my firm has experience building green homes.
For more information about the tax credits I’ve listed here, check out the Database of State Incentives for Renewables & Efficiency.