Energy Incentives ......

Energy SavingsEnergy Incentives for Individuals

What’s New for 2009

Home Energy Efficiency Property Credit

This credit, which was unavailable for 2008, has been reinstated for 2009 and 2010. You may be able to claim a credit of 30% of the cost  (up to a maximum $1,500 credit) of certain energy-efficient property or improvements placed in service during 2009 to your existing home. Energy-efficient property includes:

• High-efficiency heat pumps and air conditioners
• High-efficiency water heaters (natural gas, propane or oil)
• Energy efficient exterior windows, doors and skylights
• Insulation materials
• Roofs (metal with appropriate pigmented coatings and asphalt with appropriate cooling granules)
• Biomass stoves


Residential Energy Efficient Property Credit (Alternative Energy)

There is no maximum cap on the credit of 30% of the cost allowed for qualified solar electric property costs, qualified solar water heating property costs, qualified small wind energy property costs and qualified geothermal heat pump property costs.

 

Plug-In Electric Vehicle Credit

This tax credit is available for two types of plug-in vehicles:

• Certain low-speed electric vehicles
• Certain two– or three-wheeled vehicles

The amount of this credit is 10% of the cost of the vehicle (up to a maximum $2,500 credit) for purchases made after February 17, 2009 and before January 1, 2012.  To qualify, a vehicle must be either a low speed vehicle propelled by an electric motor that draws electricity from a battery with a capacity of 4 kw hours or more, or be a two or three-wheeled vehicle propelled by an electric motor that draws electricity from a battery with  the capacity of 2.5 kw hours.

 

Energy Incentives Questions and Answers

Q. Who qualifies to claim a residential energy property credit? Are there limitations?

A. You may be able to take these credits if you made energy saving  improvements to your personal residence.  This credit is limited to improvements placed in service during 2009 and 2010, up to a total credit of $1,500 for BOTH tax years combined.

 Q. Are there incentives for making your home energy efficient by installing alternative energy equipment—for example, installing a solar hot water heater?

A. Yes, the residential energy efficiency property credit has been enhanced by removing some of the previously imposed maximum amounts and allows a credit of 30% of the cost of qualified property (including installation labor costs).  The qualified property includes solar water heaters, geothermal heat pumps and small wind turbines installed in your home.

Q. How do you know if the property or improvement you are considering qualifies as Energy Efficient property?

A. Homeowners should be aware that the new standards are higher than those applicable to 2007 products that qualified as “energy efficient” for tax credit purposes.  However, until new guidelines are provided, homeowners may continue to rely on manufacturers’ certifications that were provided under the old guidelines. Example: For exterior windows and skylights, homeowners may continue to rely on Energy Star labels in determining whether property purchased before June 1, 2009 qualifies for the credit.