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TIME IS RUNNING OUT FOR Tax Benefits for 2007 Energy Efficiency Improvements

This is the last month to do any improvements and gain a tax benefit for improving the energy efficiency of your home. The webiste will give you the details on the extent of credits and improvements, as well as how to claim them on your tax return
http://energystar.gov/index.cfm?c=products.pr_tax_credits

· Insulation and exterior doors, including storm doors: 10 percent of the cost of the product (but not the installation), up to $500. Includes materials to seal air leaks such as caulk, weather stripping, and foam sealants.

· Central air conditioner, heat pump, or water heater: Up to $300 towards the full purchase price, including installation costs.


· Exterior windows, skylights, and storm windows: 10 percent of the total cost, up to $200. All windows with the ENERGY STAR label, the government's symbol for energy efficiency, qualify.


· Pigmented metal roofs: 10 percent of the cost of the product (but not the installation), up to $500 for metal roofs with pigmented coatings that meet ENERGY STAR requirements.


· Furnace or boiler: Up to $150 towards the full purchase price, and/or $50 for an efficient air-circulating fan in a furnace, including installation cost.

ENERGY POLICY ACT OF 2005 - SUMMARY OF TAX CREDITS FOR HOMEOWNERS

Product CategoryProduct TypeTax Credit SpecificationTax CreditNotes
Windows & DoorsExterior Windows and SkylightsENERGY STAR qualified OR meets IECC110% of cost, up to $2002 for all windows, skylights and storm windows

All ENERGY STAR labeled windows and skylights qualify for tax credit.Learn more about ENERGY STAR qualified windows and skylights.

  • Installation costs are not included.
  • For tax purposes, save your receipt and either the ENERGY STAR label from all your new windows OR the Manufacturer's Certification Statement.
  • Use IRS Form 5695 PDF Exit ENERGY STAR
Storm WindowsMeets IECC1 in combination with the exterior window over which it is installed, for the applicable climate zone10% of cost, up to $2002 for all windows, skylights and storm windows

Manufacturer Certification Statement3 will list classes of exterior window (single pane, clear glass, double pane, low-E coating, etc.)4 that a product may be combined with to be eligible in specific climate zones.

Exterior DoorsMeets IECC110% of cost, up to $5002

ENERGY STAR doors will almost always qualify, except for certain parts of California4. Learn more about ENERGY STAR qualified doors.

Storm DoorsIn combination with a wood door assigned a default U-factor by the IECC1, and does not exceed the default U-factor requirement assigned to such combination by the IECC10% of cost, up to $5002

Eligibility will be confirmed by manufacturer and documented in the Manufacturer Certification Statement3

RoofingMetal RoofsENERGY STAR qualified10% of cost, up to $5002

All ENERGY STAR labeled metal roofs qualify for the tax credit.

InsulationInsulationMeets 2000 IECC & Amendments10% of cost, up to $5002
  • For insulation to qualify, its primary purpose must be to insulate. (example: vapor retarders are covered, siding does not qualify).
  • Must be expected to last 5 years OR have a 2 year warranty
  • Installation costs are not included.
  • Manufacturer's Certification Statement3 required.
  • For tax purposes, save your receipt and the Manufacturer's Certification Statement.
  • Use IRS Form 5695 PDF Exit ENERGY STAR
HVACCentral A/CSplit Systems:
EER >=12.5
SEER >= 15

Package systems:
EER >= 12
SEER >= 14
$3002

For a list of qualified products, go to the Consortium for Energy Efficiency product directory Exit ENERGY STAR, click on the Air Conditioners and in the "CEE Tier" enter "Residential Tier 2."

Note - not all ENERGY STAR products will qualify for the tax credit.

ENERGY STAR specification:
Split Systems: EER >= 11.5 & SEER >= 14
Package systems: EER >= 11 & SEER >= 14

Air Source Heat PumpsHSPF >= 9
EER >= 13
SEER >= 15
$300²

Note - not all ENERGY STAR products will qualify for the tax credit.

ENERGY STAR specification:
Split systems: HSPF >= 8.2 & EER >= 11.5 & SEER >= 14
Package systems: HSPF >= 8 & EER >= 11 & SEER >= 14

Geo-Thermal Heat Pump

Same criteria as ENERGY STAR:

Closed Loop:
EER >= 14.1
COP >= 3.3

Open Loop:
EER >= 16.2
COP >= 3.6

Direct Expansion:
EER >= 15
COP >= 3.5

$3002

All ENERGY STAR labeled geo-thermal heat pumps qualify for the tax credit.

Gas, Oil, Propane Furnace or Hot Water Boiler

Furnaces:
AFUE >= 95

Boiler:
AFUE >= 95

$1502

For a list of qualifying products go to the Gas Appliance Manufacturing Association Exit ENERGY STAR

Note - not all ENERGY STAR products will qualify for the tax credit.

ENERGY STAR specification:
Furances: AFUE >= 90
Boilers: AFUE >= 85

Advanced Main Air Circulating FanNo more than 2% of furnace total energy use$502

For a partial list of qualifying products go to the Gas Appliance Manufacturing Association Exit ENERGY STAR

Water HeatersGas, Oil, Propane Water HeaterEnergy Factor >= 0.80$3002

Only some tankless water heaters currently qualify. This is over 33% more efficient than the current federal standard.

For a partial list of qualifying products go to the Gas Appliance Manufacturing Association Exit ENERGY STAR.

Electric Heat Pump Water HeaterEnergy Factor >= 2.0$3002

This is more than twice as efficient as the current federal standard.

CarsCarsHybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehiclesBased on a formula determined by vehicle weight, technology, and fuel economy compared to base year models

Guidance for auto manufacturers Exit ENERGY STAR is available from IRS.

There is a 60,000 vehicle limit per manufacturer before a phase-out period begins. Consumers who buy from companies that already sell large numbers of qualifying vehicles will experience a relatively short "window of opportunity" for the credits.

  • Use IRS Form 8910 PDF Exit ENERGY STAR for hybrid vehicles purchased for personal use.
  • Use IRS Form 3800 PDF Exit ENERGY STAR for hybrid vehicles purchased for business purposes.
Solar Energy SystemsSolar Water Heating
  • At least half of the energy generated by the "qualifying property" must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household.
  • The credit is not available for expenses for swimming pools or hot tubs.
  • The water must be used in the dwelling.
  • The system must be certified by the Solar Rating and Certification Corporation (SRCC).
30% of cost, up to $2,000
Photovoltaic SystemsPhotovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.30% of cost, up to $2,000
Fuel CellsFuel CellsEfficiency of at least 30% and must have a capacity of at least 0.5 kW.30% of the cost, up to $1000 per kW of power that can be produced
Posted Friday Dec 07