Home Energy Improvements Can Garner Tax Credits
ORONO, ME— Many Maine homeowners may benefit from investing in home energy efficiency, according to Donna Coffin of University of Maine Cooperative Extension. The American Recovery and Reinvestment Act (ARRA) of 2009 includes tax credits for making home energy-efficiency improvements such as added insulation, replacement windows and doors, and upgrading heating or cooling systems.
The ARRA improves upon 2006 tax credits that allowed homeowners claim 10 percent of the cost of improvements, up to $500. This new program increases the credit to 30 percent of the cost of improvements, up to $1,500.
Eligible improvements include insulation materials designed to reduce the home’s heat loss or gain, exterior doors and windows, and metal or asphalt roofs with appropriate design. Installation or labor costs can not be included. Generally the manufacturer will certify that their product meets the design criteria to qualify for the tax credit.
Heating, cooling and water-heating equipment is also eligible, including electric heat-pump water heaters; electric heat pumps; central air conditioners; natural gas, propane or oil water heaters; natural-gas, propane or oil furnaces; hot-water boilers; advanced main air circulating fans; and biomass stoves that use “plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues and fibers.” The installation costs of this equipment can be included in the tax credit. These improvements need to go into service in 2009 and 2010.
To qualify for the tax credit, the improvements need to meet guidelines under the U.S. Department of Energy’s (DOE) ENERGY STAR program. Go to www.EnergyStar.gov for details.
The $1,500 cap applies to both 2009 and 2010. If you use the $1,500 worth of energy efficiency tax credits in 2009, you can not qualify for an additional $1,500 in 2010. However, the cap does not apply to alternative energy systems such as geothermal heat pumps, solar water heaters, wind, or photovoltaic systems. These systems fall under the Residential Renewable Energy Tax Credit program, which allows 30 percent of the cost of the system, with no cap. For more information on federal and state rebates, credits and incentives go to the U.S. DOE’s Database of State Incentives for Renewables & Efficiency at www.dsireusa.org.
Coffin advises homeowners to do everything possible to conserve energy in the home before going to the big-ticket items in alternative energy systems. This includes weatherizing doors and windows, adding insulation to the attic, and updating heating and cooling systems. Once conservation measures are in place, then you can consider alternative energy systems to enhance energy savings and reduce energy consumption. For more ideas on saving energy, visit UMaine Extension at extension.umaine.edu.
The ARRA improves upon 2006 tax credits that allowed homeowners claim 10 percent of the cost of improvements, up to $500. This new program increases the credit to 30 percent of the cost of improvements, up to $1,500.
Eligible improvements include insulation materials designed to reduce the home’s heat loss or gain, exterior doors and windows, and metal or asphalt roofs with appropriate design. Installation or labor costs can not be included. Generally the manufacturer will certify that their product meets the design criteria to qualify for the tax credit.
Heating, cooling and water-heating equipment is also eligible, including electric heat-pump water heaters; electric heat pumps; central air conditioners; natural gas, propane or oil water heaters; natural-gas, propane or oil furnaces; hot-water boilers; advanced main air circulating fans; and biomass stoves that use “plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues and fibers.” The installation costs of this equipment can be included in the tax credit. These improvements need to go into service in 2009 and 2010.
To qualify for the tax credit, the improvements need to meet guidelines under the U.S. Department of Energy’s (DOE) ENERGY STAR program. Go to www.EnergyStar.gov for details.
The $1,500 cap applies to both 2009 and 2010. If you use the $1,500 worth of energy efficiency tax credits in 2009, you can not qualify for an additional $1,500 in 2010. However, the cap does not apply to alternative energy systems such as geothermal heat pumps, solar water heaters, wind, or photovoltaic systems. These systems fall under the Residential Renewable Energy Tax Credit program, which allows 30 percent of the cost of the system, with no cap. For more information on federal and state rebates, credits and incentives go to the U.S. DOE’s Database of State Incentives for Renewables & Efficiency at www.dsireusa.org.
Coffin advises homeowners to do everything possible to conserve energy in the home before going to the big-ticket items in alternative energy systems. This includes weatherizing doors and windows, adding insulation to the attic, and updating heating and cooling systems. Once conservation measures are in place, then you can consider alternative energy systems to enhance energy savings and reduce energy consumption. For more ideas on saving energy, visit UMaine Extension at extension.umaine.edu.
posted by UMaine Extension at 7:56 AM
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