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
|
10% of the product cost, up to $500 (materials only)
|
|
|
Insulation
|
10% of the product cost, up to $500 (materials only)
|
|
|
Roofing
|
10% of the product cost, up to $500 (materials only)
|
Must be Energy Star
|
|
Central AC
|
$300 toward installation and equipment
|
|
|
Heat pump
|
$300 toward installation and equipment
|
|
|
Water heater
|
$300 toward installation and equipment
|
|
|
Biomass space heater or water heater
|
$300 toward installation and equipment
|
|
|
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
|
$150 toward installation and equipment
|
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
|
Credit
|
To qualify
|
|
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
|
30% tax credit for equipment and installation; $2000 cap
|
|
|
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.
