Facts on the Energy-Efficient Tax Credit
The Existing Home Retrofit Tax Credit (Tax Code Section 25C): Tax credits are available at 30% of the cost, up to a $1,500 lifetime limit, for installations in 2009 & 2010 (for existing homes only) of these products:
- Windows and Doors
- Insulation
- Roofs (Metal and Asphalt)
- HVAC
- Water Heaters (non-solar)
- Biomass Stoves
Installation costs may be included as part of the tax credit calculation for certain HVAC, water heater, and biomass stove installations.
The Wind, Solar, Geothermal and Fuel Cell Tax Credit (Tax Code Section 25D): Tax credits are available at 30% of the cost, with no cap through 2016 (for existing homes and new construction) for:
- Geothermal Heat Pumps
- Solar Panels
- Solar Water Heaters
- Small Wind Energy Systems
- Fuel Cells
The energy-efficiency home products must be "placed in service" between Jan. 1, 2009 and Dec. 31, 2010. The credits are only valid for improvements made to the taxpayer's principal residence, except for qualified geothermal, solar, wind property, which can be installed on any home used as a residence by the taxpayer.
Home owners can claim the 25C and 25D credits on Form 5695 when they file their income tax returns. Check with your tax professional to ensure correct application of the energy-efficiency tax credit. Retain all receipts as well as records that include:
- Name and address of the manufacturer
- Make, model or other appropriate identifiers for the component
- Manufacturer’s statement that the component meets the tax credit standards
- Climate zones for which the criteria are satisfied
