Energy Star Residental Tax Credits

ENERGY STAR is a joint program of the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy that promotes energy-efficient products and practices.

On October 3, 2008, President Bush signed into law the "Emergency Economic Stabilization Act of 2008." The bill extended tax credits for energy efficient home improvements to include windows, doors, roofs, insulation, HVAC, and non-solar water heaters). The residential tax credit is available for the aforementioned improvements made and placed in service in 2009 & 2010.

According to the government website, tax credits are available at 30% of the cost up to $1500 for existing homes only (new construction does not qualify). The website goes on to explain the rules:

Tax credits are now available for home improvements:

• must be "placed in service" from January 1, 2009 through December 31, 2010
• must be for taxpayer's principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes qualify)
• $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016
• must have a Manufacturer Certification Statement to qualify
• for record keeping, save your receipts and the Manufacturer Certification Statement
• improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010
• If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters. More.

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