Tax Credits Extended

Congress has extended energy efficiency tax credits for most homeowners through the end of 2010, so if you’ve been looking to upgrade your water heater or windows and doors, you can probably still get a tax credit in the coming year.  Some less common of the tax credits will be around all the way until 2016.

Energy Tax Credits Extended Through December 31, 2010

So how much is the tax credit and how do I get it?
So what does this mean?  For any qualified upgrade, the tax credit is 30% of the covered cost up to a $1500 total credit. For instance, if you pay $4000 for a central air conditioning system (excluding installation costs), your credit would be $1200.

The house must be your principal residence and the credits don’t apply to new construction. Other, upgrade-specific restrictions apply, so see the government site for details:

http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

What Energy Efficient Products are Eligible for the Tax Credit?

A variety of products are eligible for the tax credit, however, you need to be careful that your specific product is eligible.  Some of the products include:

• Energy Efficient Windows and Doors, including many Storm Doors and Skylights. Cost eligible for the tax credit does not include installation costs. Certain other restrictions (like U-value and IECC qualifications apply).
• Water Heaters. Credit includes installation costs; some restrictions for energy efficiency apply.
• Metal and Asphalt Roofs. Credit does NOT include installation costs. The roof must be highly energy efficient (asphalt roofs must have cooling granules, for instance).
• Insulation, whether spray foam, fiberglass, or blow-in cellulose, they’re all covered so long as they meet IECC requirements. Installation cost is NOT covered.
• HVAC Components, including certain Advanced Air Handlers, Air Force Heat Pumps, Central A/C Units, Boilers, Propane, and Gas Furnaces. Tax credits include installation costs.
• Biomass Stoves.

- Source: Peter Anderson