Summary of Tax Credits for Homeowners

Product Category

Product Type

Tax Credit Specification

Tax Credit

Notes
Windows & Doors Exterior Windows and Skylights U factor <= 0.30

SHGC <= 0.30

 30% of cost, up to $1,5002 Not all ENERGY STAR labeled windows and skylights qualify for tax credit.
Storm Windows Meets IECC1 in combination with the exterior window over which it is installed, for the applicable climate zone 30% of cost, up to $1,5002 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 Doors U factor <= 0.30

SHGC <= 0.30

 30% of cost, up to $1,5002 Not all ENERGY STAR doors will qualify.
Storm Doors In 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 IECC 30% of cost, up to $1,5002
Roofing Metal Roofs,
Asphalt Roofs		 ENERGY STAR qualified 30% of cost, up to $1,5002 All ENERGY STAR labeled metal and asphalt roofs qualify for the tax credit.

Must be expected to last 5 years OR have a 2 year warranty.
Insulation Insulation Meets 2009 IECC & Amendments 30% of cost, up to $1,5002 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
HVAC Central A/C Split Systems:
EER >=13
SEER >= 16

Package systems:
EER >= 12
SEER >= 14

 30% of cost, up to $1,5002 For a list of qualified products, go to the Consortium for Energy Efficiency product directory , click on the Air Conditioners and in the “CEE Tier” enter “Residential Advanced Tier 3” for CAC Split Systems, and “Residential Tier 2″ for CAC package systems and ASHPs.

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

ENERGY STAR Spec (same for CAC and ASHP):

Split Systems:
HSPF >= 8.2
EER >= 12
SEER >= 14.5

Package systems:
HSPF >= 8
EER >= 11
SEER >= 14
Air Source Heat Pumps Split Systems:
HSPF >= 8.5
EER >= 12.5
SEER >= 15

Package systems:
HSPF >= 8
EER >= 12
SEER >= 14

 30% of cost, up to $1,5002
Natural Gas or Propane Furnace AFUE >= 95 30% of cost, up to $1,5002 For a list of qualifying products go to the Gas Appliance Manufacturing Association

Not all ENERGY STAR products will qualify for the tax credit.

ENERGY STAR Spec:

Gas Furnaces: AFUE >= 90

Oil Furnaces: AFUE >= 85

Boilers: AFUE >= 85
Oil Furnace AFUE >= 90 30% of cost, up to $1,5002
Gas, Propane, or Oil Hot Water Boiler AFUE >= 90 30% of cost, up to $1,5002
Advanced Main Air Circulating Fan No more than 2% of furnace total energy use 30% of cost, up to $1,5002 For a partial list of qualifying products go to the Gas Appliance Manufacturing Association
Geo-Thermal Heat Pump 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

 30% of the cost – NOT subject to $1,500 cap All ENERGY STAR labeled geo-thermal heat pumps qualify for the tax credit.

Use IRS Form 5695

Must be “placed into service” between Jan. 1, 2008–Dec. 31, 2016.
Water Heaters Gas, Oil, Propane Water Heater Energy Factor >= 0.82
or a thermal efficiency of at least 90%.		 30% of cost, up to $1,5002 Not all ENERGY STAR gas storage and gas condensing water heaters will qualify for the tax credit. All ENERGY STAR gas tankless models will qualify.

ENERGY STAR criteria:

Gas Storage:
Energy Factor >= .62

Gas Tankless:
Energy Factor >= 0.82

Gas Condensing:
Energy Factor >= 0.8

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

Electric Heat Pump Water Heater Same criteria as ENERGY STAR: Energy Factor >= 2.0 30% of cost, up to $1,5002 All ENERGY STAR qualified electric heat pump water heaters qualify for the tax credit.
Biomass Stove Biomass Stove Stove which burns biomass fuel5 to heat a home or heat water.

Thermal efficiency rating of at least 75% as measured using a lower heating value.

 30% of cost, up to $1,5002
Solar Energy Systems Solar 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 Use IRS Form 5695

Must be placed in service before December 31, 2016.
Photovoltaic Systems Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement. 30% of cost Use IRS Form 5695

Must be placed in service before December 31, 2016.
Small Wind Energy Systems Residential Small Wind Energy Systems 30% of the cost Must be placed in service by December 31, 2016.

Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

Not limited to $1,500 cap.
Fuel Cells Residential Fuel Cell and microturbine system Efficiency of at least 30% and must have a capacity of at least 0.5 kW. 30% of the cost, up to $1500 per .5 kW of power capacity Must be placed in service by December 31, 2016.

Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

Not limited to $1,500 cap.
Cars Hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles Based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models There is a 60,000 vehicle limit per manufacturer before a phase-out period begins. Toyota and Honda have already been phased out. Credit is still available for Ford, GM and Nissan.

For more information visit: Fueleconomy.gov

Use IRS Form 8910 for hybrid vehicles purchased for personal use.

Use IRS Form 3800 for hybrid vehicles purchased for business purposes.
Plug-in hybrid electric vehicles $2,500–$7,500 The first 250,000 vehicles sold get the full tax credit (then it phases out like the hybrid vehicle tax credits).

Effective January 1, 2009.