Tax Credits for Homeowners:
There are different levels of credit depending on the type of improvement made, but the maximum amount of homeowner credit for all improvements combined cannot exceed $500 during the two year period of the tax credit. This tax credit applies to improvements made from January 1, 2006 through December 31, 2007.
Eligible measures are:
- Added insulation to walls, ceilings, or other part of the building envelope
- Replacement windows
- High-efficiency gas, oil, and propane furnaces and boilers
- High-efficiency central air conditioning units, including air-source and ground-source heat pumps
- High-efficiency fans for heating and cooling systems
- High-efficiency water heaters, including heat pump water heaters
Incentive amounts are:
- Added insulation: 10% of cost up to $500
- Replacement windows: 10% of cost up to $200
- Furnaces and boilers: $150 for qualifying units
- Central air conditioning units: $300 for qualifying units
- Fans for heating and cooling systems: $50 for qualifying units
- Water heaters: $300 for qualifying units
ENERGY POLICY ACT OF 2005
DRAFT SUMMARY OF TAX CREDITS FOR HOMEOWNERS¹
(US Treasury has not yet provided final interpretation for IRS use)
| Product Category |
Product Type |
Tax Credit Specification |
Tax Credit |
ENERGY STAR Specification |
| Windows |
Exterior Windows |
Meet 2000 IECC & Amendments |
10% of cost not to exceed $200 total |
Climate dependant - 4 Zones |
| Skylights |
Meet 2000 IECC & Amendments |
10% of cost not to exceed $200 total |
Climate dependant - 4 Zones |
| Exterior Doors |
Meet 2000 IECC & Amendments |
10% of cost not to exceed $500 |
Climate dependant - 4 Zones |
| Roofing |
Metal Roofs |
ENERGY STAR qualified |
10% of cost not to exceed $500 |
Minimum Solar Reflectance |
| Insulation |
Insulation |
Meet 2000 IECC & Amendments |
10% of cost not to exceed $500 |
Meets FTCs "home insulation" definition |
| HVAC |
Central A/C |
EER 12.5/SEER 15 Split Systems
EER 12/SEER 14 Package systems |
$300 |
EER 11.5/ SEER 14 Split systems
EER 11/SEER 14 Package systems |
| Air Source Heat Pumps |
HSPF 9 EER 13 SEER 15 |
$300 |
HSPF 8.2 EER 11.5 SEER 14 Split
HSPF 8 EER 11 SEER 14 Package |
| Geo-Thermal Heat Pump |
EER 14.1 COP 3.3 Closed Loop
EER 16.2 COP 3.6 Open Loop
EER 15 COP 3.5 Direct Expansion |
$300 |
EER 14.1 COP 3.3 Closed Loop
EER 16.2 COP 3.6 Open Loop
EER 15 COP 3.5 Direct Expansion |
| Gas, Oil, Propane Water Heater |
Energy Factor 0.80 |
|
N/A |
| |
Electric Heat Pump Water Heater |
Energy Factor 2.0 |
|
N/A |
| |
Gas, Oil, Propane Furnace or Hot Water Boiler |
AFUE 95 |
$150 |
AFUE 90 for furnaces
AFUE 85 for boilers |
| |
Advanced Main Air Circulating Fan |
No more than 2% of furnace total energy use |
$50 |
N/A |
Other Tax Credits for Homeowners:
In addition to these homeowner tax credits, a separate tax credit for solar hot water systems is available. These credits are not limited to the $500 cap. Consumers can earn a tax credit of up to 30% of the cost ($2,000 max lifetime) for installing PV or solar hot-water systems used exclusively for purposes other than heating swimming pools and hot tubs. The system must use solar power to provide at least half of a home's hot water. In addition, the water must be used in the dwelling and the system must be certified by the Solar Rating and Certification Corporation (SRCC). There is also a consumer tax credit of up to 30% of the cost (up to $500 per 0.5 kW of capacity maximum) for installing a "qualified" fuel cell unit. The credits are available for 2006, 2007, and 2008.
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