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Residential Energy Efficiency Tax Credit

Federal
Personal Tax Credit
Water Heaters, Furnaces, Boilers, Heat pumps, Central Air conditioners, Building Insulation, Windows, Roofs, Circulating fans used in a qualifying furnace
Biomass, Stoves that use qualified biomass fuel
Residential
Purchases made in 2011, 2012, or 2013: Aggregate amount of credit is limited to $500. Taxpayer is ineligible for this tax credit if this credit has already been claimed by the taxpayer in an amount of $500 in any previous year.

For purchases made in 2009 or 2010: Aggregate amount of credit for all technologies placed in service in 2009 and 2010 combined is limited to $1,500.

Equipment must be new and in compliance with all applicable performance and safety standards as described in tax code
1/1/2006
12/31/2013
This credit applies to energy efficiency improvements in the building envelope of existing homes and for the purchase of high-efficiency heating, cooling and water-heating equipment. Efficiency improvements or equipment must serve a dwelling in the United States that is owned and used by the taxpayer as a primary residence. The maximum tax credit for all improvements made in 2011, 2012, adn 2013 is $500. The cap includes tax credits for any improvements made in any previous year. If a taxpayer claimed $500 or more of these tax credits in any previous year, any purchases made in 2011, 2012, or 2013 will be ineligible for a tax credit.
Owners of existing homes may receive a tax credit worth 10% of the cost of upgrading the efficiency of the building’s envelope. Installation (labor) costs are not included and the credit is capped at $500 for all improvements. To be eligible for the credit, the improvement must meet the prescriptive requirements established for it under the 2009 International Energy Conservation Code (including supplements). The following improvements are eligible for the tax credit:

  • Insulation materials and systems designed to reduce a home’s heat loss or gain
  • Exterior doors and windows (including skylights) — no more than $200 in total credits can be claimed for windows in years 2006 – 2013
  • Pigmented metal roofs designed to reduce heat gain, and asphalt roofs with appropriate cooling granules
Taxpayers who purchase qualified residential energy-efficient property may be eligible for a tax credit. The credit is equal to the full cost of the equipment up to the following caps:

  • Advanced main air circulating fan: $50
  • Natural gas, propane, or oil furnace or hot water boiler with an annual fuel utilization rate of 95 or greater: $150
  • Electric heat pump water heater with an energy factor of at least 2.0: $300
  • Electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency: $300
  • Central air conditioner which achieves the highest efficiency tier established by the Consortium for Energy Efficiency: $300
  • Natural gas, propane, or oil water heater which has either an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent: $300
  • 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”: $300
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