What is included in the 2012 and 2013 Federal Tax Credit?

The following applies to the 6 product categories below:

Tax Credit:

10% of cost up to $500 or a specific amount from $50–$300

Expires:

December 31, 2013

Details:

Must be an existing home & your principal residence. New construction and rentals do not qualify.

• Biomass Stoves

Biomass Stoves

·         Biomass stoves burn biomass fuel to heat a home or heat water. Biomass fuel includes agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.

Tax Credit Amount: $300

Requirements

Thermal efficiency rating of at least 75%

More Information

• How to apply
• Wood Burning Efficiency & Safety

• Heating, Ventilating, Air Conditioning (HVAC)

·  Advanced Main Air Circulating Fan

An Advanced Main Air Circulating Fan is an efficient fan, or blower motor which blows the air that your furnace heats up through the duct system.

Tax Credit Amount: $50

Requirements

Must use no more than 2% of the furnace's total energy.

More Information

• How to apply

·  Air Source Heat Pumps

Heat pumps offer an energy-efficient alternative to furnaces and air conditioners in moderate climates. Like your refrigerator, heat pumps use electricity to move heat from a cool space into a warm, making the cool space cooler and the warm space warmer. During the heating season, heat pumps move heat from the cool outdoors into your warm house; during the cooling season, heat pumps move heat from your cool house into the warm outdoors. Because they move heat rather than generate heat, heat pumps can provide up to 4 times the amount of energy they consume.

Tax Credit Amount: $300

Requirements

Split Systems:
HSPF ≥ 8.5
EER ≥ 12.5
SEER ≥ 15
Package systems:
HSPF ≥ 8
EER ≥ 12
SEER ≥ 14
See Definitions.

More Information

• How to apply

·  Central Air Conditioning (CAC)

The best way to find tax credit eligible CACs is to ask your HVAC Contractor (Heating Ventilation and Air Conditioning). To verify tax credit eligibility, ask your HVAC contractor to provide the Manufacturer Certification Statement for the equipment you plan to purchase. Or, search the Manufacturer's website.

Tax Credit Amount: $300

Requirements

Split Systems:
SEER ≥ 16
EER ≥ 13
Package systems:
SEER ≥ 14
EER ≥ 12
See definitions.

More Information

• How to apply

·  Gas, Propane, or Oil Hot Water Boiler

These are heating units that use water circulated throughout the home in a system of baseboard heating units, radiators, and/or in-floor radiant tubing.

Tax Credit Amount: $150

Requirements

AFUE ≥ 95
Tax Credit includes installation costs.
See definitions.

More Information

• How to apply

·  Natural Gas, Propane or Oil Furnace

A furnace uses the combustion of fuel and air to create heat.

•  
• Insulation

Adding adequate insulation is one of the most cost-effective home improvements that you can do.

Tax Credit Amount: 10% of the cost, up to $500

Requirements

Typical bulk insulation products can qualify, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place.
Products that air seal (reduce air leaks) can also qualify, as long as they come with a Manufacturers Certification Statement, including:

• Weather stripping
• Spray foam in a can, designed to air seal
• Caulk designed to air seal
• House wrap

Tax Credit does NOT include installation costs. But, you can install the insulation/home sealing yourself and get the credit.
See definitions.

More Information

• How to apply
• Insulation efficiency through Home Performance with ENERGY STAR
• Heat & Cool Efficiently at Home

•  
• Roofs (Metal & Asphalt)

Roofs (Metal & Asphalt)

·         Qualified roof products reflect more of the sun's rays, which can lower roof surface temperature by up to 100F, decreasing the amount of heat transferred into your home.

Tax Credit Amount: 10% of the cost, up to $500

Requirements

"Metal roofs with appropriate pigmented coatings" and "asphalt roofs with appropriate cooling granules" that also meet ENERGY STAR requirements.

Tax Credit does NOT include installation costs.

More Information

• How to apply

• Water Heaters (non-solar)

·         Gas, Oil, Propane Water Heater

Water heating can account for 14%–25% of the energy consumed in your home.

Tax Credit Amount: $300

Requirements

Energy Factor ≥ 0.82 OR a thermal efficiency of at least 90%.

See definitions.

More Information

• How to apply

·         Electric Heat Pump Water Heater

Water heating can account for 14%–25% of the energy consumed in your home.

Tax Credit Amount: $300

Requirements

Energy Factor ≥ 2.0

More Information

• How to apply

•  
• Windows & Doors

Windows, Doors, Skylights

Energy efficient windows, doors and skylights can reduce energy bills.

Tax Credit Amount: 10% of the cost, up to $500, but windows are capped at $200.

Requirements

Must be ENERGY STAR qualified.
You do not have to replace all the windows/doors/skylights in your home to qualify. And it doesn't need to be a replacement either - installing a new window where there wasn't one previously (like in an addition) qualifies.
Tax Credit does NOT include installation costs.

The following applies to the 3 product categories below:

Tax Credit:

30% of cost with no upper limit

Expires:

December 31, 2016

Details:

Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.

·  Geothermal Heat Pumps

·         Geothermal heat pumps are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. Because they use the earth's natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available.

Requirements

Must meet the requirements of the ENERGY STAR program which are in effect at the time of the expenditure.

Water-to-Air
   Closed Loop:
      EER ≥ 17.1
      COP ≥ 3.6
   Open Loop:
      EER ≥ 21.1
      COP ≥ 4.1

Water-to-Water
   Closed Loop:
      EER ≥ 16.1
      COP ≥ 3.1
   Open Loop:
      EER ≥ 20.1
      COP ≥ 3.5

Direct Expansion:
    EER ≥ 16
    COP ≥ 3.6

Tax Credit includes installation costs.

See definitions.

More Information

• How to apply
• Geothermal Heat Pump FAQ
• All ENERGY STAR geo-thermal heat pumps qualify for the tax credit.
• What about water-to-water geothermal heat pumps?

Small Wind Turbines (Residential)

·         A wind turbine collects kinetic energy from the wind and converts it to electricity that is compatible with a home's electrical system.

Requirements

Must have a nameplate capacity of no more than 100 kilowatts.

Tax Credit includes installation costs.

More Information

• How to apply

•  

Solar Energy Systems

·         Solar Water Heaters

Solar water heaters come in a wide variety of designs, all including a collector and storage tank, and all using the sun's thermal energy to heat water. Solar water heaters are typically described according to the type of collector and the circulation system.

Requirements

At least half of the energy generated by the "qualifying property" must come from the sun. The system must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.

Note: The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling.

Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.

Tax Credit includes installation costs.

More Information

• How to apply
• Solar Water Heater FAQ
• All ENERGY STAR Qualified solar water heaters qualify for the tax credit.

·         Solar Panels (Photovoltaic Systems)

Solar Panels or Photovoltaic Systems are solar cells that capture light energy from the sun and convert it directly into electricity.

Requirements

Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.

More Information

• How to apply

·         Yes, Solar Water Heaters can qualify for a tax credit.

How much:	30% of the cost (including installation/labor costs), with no upper limit.
Timing:	Tax credit in effect in through 2016. Must be installed in a home you own and use as a residence (no rentals, but second homes qualify) between January 1, 2006 and December 31, 2016.
Details:	At least half of the energy generated by the solar water heater ("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 system must be certified by the Solar Rating and Certification Corporation (SRCC). The water must be used in the dwelling. The credit is not available for expenses for swimming pools or hot tubs.
Find qualified models:	All ENERGY STAR qualified solar water heaters [pdf] qualify for the tax credit.
How to apply:	File Tax Form 5695 with your tax return.

• How do I apply for the tax credit? What tax form do I need for the energy efficiency tax credits?
• Have the tax credits been extended for 2012 and 2013?
• What is a Manufacturer's Certification Statement? Where can I find it?
• Is there a tax credit for geothermal heat pumps?
• What does "placed in service" mean?
• Is there a tax credit for roofs?
• Is there a tax credit for central air conditioners (CACs)?
• What is a "principal residence?"
• Is there a tax credit for furnaces and boilers?
• Is there a tax credit for gas, oil, or propane water heaters?
• Is there a tax credit for windows, doors, and skylights?
• What products are NOT covered by the tax credits?
• Is there a tax credit for insulation and home sealing products?
• Can I do the install myself for the tax credit?
• Is there a tax credit for water heaters?
• Is there a tax credit for water-to-water geothermal heat pumps?
• What parts of a geothermal heat pump are covered by the tax credit?
• Is there a tax credit for solar water heaters?
• Is there a tax credit for electric heat pump water heaters?
• Is there a tax credit for heat pumps?
• Do I have to replace both my heating and air conditioning to qualify for the tax credit?
• Is there a tax credit for corn, pellet, or wood-burning (biomass) stoves?
• Is there a tax credit for garage doors?
• I am building a new home, can I qualify for any of the tax credits?
• Is there a list of all Central Air Conditioners (CACs) that qualify for the tax credit?
• Can the energy efficiency tax credit be carried over to future years?  
• Is there a tax credit for indirect water heaters?
• I am getting a rebate and a tax credit for an energy efficient product I purchased. Do I have to subtract my rebate first before I calculate my tax credit?
• I’m buying a new product that qualifies for the tax credit. How do I know which components associated with it are also eligible for the credit? For example, for a qualified roof, would the nuts & bolts, be included?
• Is there a tax credit for an "advanced main air circulating fan?"
• Does a geothermal heat pump have to include water heating to qualify for the 30% tax credit?
• Where do I get the rebate form for my ENERGY STAR qualified product?
• How can I determine if I can collect the tax credit? Does it matter if I am getting a tax refund?
• Is there a tax credit for ENERGY STAR new homes?
• Is there a tax credit for fireplace inserts?
• Is there a tax credit for window treatments (shutters, shades, blinds, awnings, curtains)?
• Is there a tax credit for insulated siding?
• Is there a tax credit for solar fans?
• Is there a tax credit for electric furnaces or boilers?
• If I buy an ENERGY STAR new home with a water heater that meets the tax credit, can I, as the homebuyer, get the tax credit? Or does the builder get the consumer tax credit?
• Is there a tax credit for window unit air conditioners?
• Are vacation or second homes eligible for the tax credit?
• Can I still get a tax credit for a home improvement installed 2 years ago that I failed to apply for?
• What is the history of the tax credits?
• Is there a tax credit for hybrid cars?
• Is there a tax credit for roof coatings?
• Is there a tax credit for duct sealing?
• Are mobile homes owners eligible for the tax credit?
• Are there rebates for buying ENERGY STAR qualified home?
• Can I get the tax credit for a rental property?
• Can renters get the tax credit?
• I don’t have to file income taxes, can I still get the energy efficiency tax credit?
• If my house doesn't currently have an air conditioner, can I still qualify for the tax credit if I have a new one installed?
• Can two people living in the same home both get the tax credit?
• Are residents of Puerto Rico and other territories eligible to receive the tax credits for energy efficiency?
• Where can I find information on local programs promoting ENERGY STAR lighting products?
• Is there a tax credit for residential small wind turbines?
• What's the difference between a tax credit and a tax deduction?
• Is there a tax credit for "whole house" fans?
• I own a duplex. I live in half, and rent the other half. Can I get the tax credit?
• Does the tax credit double for married people filing a joint tax return?
• How do I calculate the tax credit on a furnace/Central Air Conditioner (CAC) combination when both parts don't qualify?
• I have a central air conditioning (CAC) split system and only need to replace the outside condensing unit.  Do I have to replace both the outside condenser and the inside evaporator coil in order to claim the tax credit?
• Can I get the tax credits for a renovation or addition?
• Can I include sales tax when determining the total cost for the tax credit?
• Can I use the 1040EZ or 1040A form and get the tax credit for energy efficiency? Do I have to itemize?
• Can used or second hand products qualify for the tax credit?
• Do detached garages, barns, or other structures on your property, but not connected to your main house, count for the tax credit?
• Are apartment buildings that make energy efficient improvements eligible for the commercial tax deduction?
• Are there any tax incentives for commercial buildings?
• Can condo or co-op owners get the tax credit?
• Can I get a tax credit for a product that I purchased for a relative's home as a gift?
• What form does a builder need to fill out for the Home builder tax credit?
• Is there a tax credit for Structural Insulated Panels (SIPs)?
• Do I have to first subtract my state or local financing ("subsidized energy financing") for my energy efficiency improvement before I calculate the 30% federal tax credit?
• Can I get the tax credit if my new equipment is paid for by insurance?
• Does ENERGY STAR provide financing?
• Is the tax credit non-refundable?
• Is there a tax credit for fuel cells or microturbines?