The nation's new energy law, the Energy
Policy Act of 2005, offers you federal tax credits to make energy-saving
improvements to your home. These tax credits will help you lower
your income taxes dollar-for-dollar. Consumers who purchase and install
specific products, such as energy-efficient windows, insulation,
doors, roofs, and heating and cooling equipment in the home can receive
a tax credit of up to $500 beginning in January 2006.
The EPACT also provides a credit equal
to 30% of qualifying expenditures for purchase for qualified photovoltaic
property and for solar water heating property used exclusively for
purposes other than heating swimming pools and hot tubs. The
credit shall not exceed $2000.
Improvements must be installed in or on the taxpayer?s principal
residence in the United States.
Home improvement tax credits
apply for improvements made between January 1, 2006 and December
31, 2007.
|
Product Category
|
Product Type
|
Tax Credit Specification
|
Tax Credit
|
|
Windows
|
Exterior Windows
|
Meet 2000 IECC & Amendments
|
10% of cost not to exceed $200 total
|
|
Skylights
|
Meet 2000 IECC & Amendments
|
10% of cost not to exceed $200 total
|
|
Exterior Doors
|
Meet 2000 IECC & Amendments
|
10% of cost not to exceed $500 total
|
|
Roofing
|
Metal Roofs
|
Energy Star qualified
|
10% of cost not to exceed $500 total
|
|
Insulation
|
Insulation
|
Meet 2000 IECC & Amendments
|
10% of cost not to exceed $500 total
|
|
HVAC
|
Central AC
|
EER 12.5/SEER 15 split Systems EER 12/SEER 14
package systems
|
$300
|
|
Air source heat pumps
|
HSPF 9 EER 13 SEER 15
|
$300
|
|
Geothermal 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
|
|
Gas, oil, propane water heater
|
Energy Factor 0.80
|
$300
|
|
Electric heat pump water heater
|
Energy Factor 2.0
|
$300
|
|
Gas, oil, propane furnace or hot water boiler
|
AFUE 95
|
$150
|
|
Advanced main air circulating fan
|
No more than 2% of furnace total energy use
|
$50
|
Making your home more energy efficient can help
you get more value from your energy dollar. But did you know that
making your home more energy efficient can also give you greater
quiet, comfort, and a higher resale value? In addition to the tax
credits already discussed, here are some ways utility companies can
help (contact your local utility for details):
? Cash rebates and/or low-interest loans for purchasing energy-efficient appliances.
? Programs that cycle big, energy-using appliances like air conditioners on-and-off
for certain period of time in exchange for a credit on your monthly bill.
Article courtesy of Edison Electric Institute
and U.S. Dept. of Energy
