9.7. Federal Tax Credits for Energy Efficiency

(Source: ENERGY STAR—U.S. Environmental Protection Agency—U.S. Department of Energy).
Tax Credits for Consumers: There are many tax credits and incentives available for energy efficiency. For example, one is 10% of cost up to $500 or a specific amount from $50–$300. This expires on December 31, 2016. It must be for an existing home and your principal residence. New construction and rentals do not qualify. This is applicable for:
• Windows, Doors, and Skylights
• Insulation
• Roofs (Metal and Asphalt)
• HVAC
• Water Heaters (nonsolar)
• Biomass Stoves
• Air Source Heat Pumps.
Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes and new construction). Second homes qualify but Rentals do not qualify. This is applicable for:
• GHPs
• Solar Energy Systems
• Small Wind Turbines (Residential).
Tax credits are available at 30% of the cost up to $500 per 0.5 kW of power capacity through 2016 for existing homes and new construction. Must be principal residence; Rentals and second homes do not qualify. This is applicable for:
• Fuel Cells
• Microturbine Systems.
Tax Deductions for Commercial Buildings: A tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of up to $60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. These tax deductions are available for systems placed in service from January 1, 2006 toDecember 31, 2013. In addition, there are many other tax credits for efficient cars, home builders, home improvements, and so forth.
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