How to Get Tax Credits for Conserving Energy

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By Dave Donovan
eHow Contributing Writer

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(5 Ratings)

Energy conservation is one of the easiest things we as consumers can do to help reduce global warming. But, if it's such an easy thing, why aren't more people doing it? Is it laziness--a lack of care or understanding--or are people just not accepting of change? To help prod people into a more energy-conscious state--the government is motivating people the old-fashioned way--with money! Here are a few ways you can get tax credits for conserving energy.

Difficulty: Easy

Instructions

How to Receive Tax Credits for Solar Energy Systems

Step 1

If you installed a solar water heater or a photovoltaic system in your home after January 1, 2006, you may be eligible for a tax credit.
Step 2

For these systems, the tax credit is 30 percent of the system's cost, up to $2,000. In January, 2009, the $2,000 cap was removed for photovoltaic systems, so homeowners may be able to save even more.
Step 3

This credit is a separate entity from the $500 tax credit that is allotted for home improvements.

How to Receive Tax Credits for Wind Energy Systems

Step 1

If you had a small wind turbine system installed after January 1, 2008, you may be entitled to a tax credit.
Step 2

The tax credit for this installation is 30 percent of the cost of the wind energy system, up to $500 per each half-kilowatt of capacity. The maximum credit is $4,000.
Step 3

The wind turbine tax credit will be available through December 31, 2016, so it's important to keep in mind if you are considering installing one in the near future.

How to Receive Tax Credits for Fuel Cell Systems

Step 1

If you had a microturbine or fuel cell system installed after January 1, 2006, you may be eligible for a tax credit. Your fuel cell system must be "qualified" to be eligible for the credit.
Step 2

The tax credit for this installation is 30 percent of system costs, up to $1,500 per half-kilowatt of capacity.
Step 3

This tax credit is separate from the $500 home improvement credit and is in effect until December 31, 2016.

How to Receive 2009 Energy Conservation Tax Credits

Step 1

President George Bush signed into law the “Emergency Economic Stabilization Act of 2008” on October 3, 2008. This bill basically extends the tax credits provided to homeowners for making energy efficient improvements on their homes. The original bill expired at the end of 2007, so unfortunately, any improvements made during 2008 will not be eligible. However, starting January 1, 2009, any of the following improvements will be eligible for a tax credit under this bill.
Step 2

Homeowners will be able to receive a tax credit for 10 percent of the cost, up to $200 for:

Windows (Energy Star qualified)
Storm windows (Energy Star qualified)
Skylights (Energy Star qualified)
Step 3

Homeowners will be able to receive a tax credit for 10 percent of the cost, up to $500 for:
Exterior doors (Meets IECC)
Storm doors (Meets IECC)
Metal roofs (Energy Star qualified)
Asphalt roofs (Energy Star qualified)
Insulation (Meets 2000 IECC & Amendments)
Step 4

Homeowners will be able to receive a tax credit for $300 for new, energy-efficient HVAC systems and airsource heat pumps. The requirements for meeting the eligibility are:

Split Systems:
EER >=12.5
SEER >= 15

Package Systems:
EER >= 12
SEER >= 14

Air Source Heat Pumps:
HSPF >= 9
EER >= 13
SEER >= 15
Step 5

If the homeowner installs an Energy Star qualified geo-thermal heat pump, they may be eligible for a tax credit of 30 percent of the cost, up to $2,000.
Step 6

Installation of gas, oil or propane furnaces or water boilers with an AFUE greater or equal to 95 will be eligible for a tax credit of $150.
Step 7

The installation of an advanced main air circulating fan that makes up no more than 2 percent of the furnace's total energy use will be eligible for a $50 tax credit.
Step 8

Homeowners can be eligible for a $300 tax credit on the following installations:
Gas, Oil or Propane Water Heater (Energy Factor >= 0.80 or a thermal efficiency of at least 90 percent)
Electric Heat Pump Water Heater (Energy Star qualified with an energy factor greater than or equal to 2.0)
Biomass Stove (thermal efficiency rating of at least 75 percent)
Step 9

Plug-in hybrid electric vehicles will be eligible for between $2,500 and $7,500 in tax credits.

* Note: only the first 250,000 sold will be eligible for the FULL tax credit. After that, the hybrid tax credits will begin to phase out.

Comments

jasminemars said

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on 2/9/2009 This article has me motivates to do some home improvement projects this year. I just noticed one of my local credit unions is offering low interest rate loans for energy saving home improvements, too (7.25%). Worth checking around for such loans in your area. 5* great article, very thorough!