Sunday, January 31, 2010

Federal Tax Credits for Energy Efficient Products

Homeowners who purchase energy efficient products save money by reducing their utility bills. The U.S. government provides additional incentives for green improvements by offering income tax credit on energy saving products. Eligibility for tax credits requires that improvements are made to the homeowner's principal residence. Unfortunately, rental properties and new construction do not quality. Offers expire between December 31, 2010 and December 31, 2016, depending on the product.

Home owners should apply for a tax credit - up to $1500 or equal to 30% of cost - on energy saving products for their existing, primary residence on the following qualifying items:

  • Biomass stoves, which burn biomass fuel (wood, grass, and other plant fiber) to heat water and provide home heating
  • Energy efficient heating, ventilating, and air conditioning (HVAC) products, such as:
  • Advanced main air circulating fans
  • Air source heat pumps
  • Central air conditioning
  • Hot water boilers used for residential heating
  • Gas, propane, and oil heaters
  • Geothermal heat pumps
  • Insulation
  • Water heaters
  • Windows, Doors, and Skylights, including storm windows and storm doors
  • Small residential wind turbines
  • Solar Energy Systems, such as: solar panels & solar water heaters
  • Fuel Cells

For more information about government tax credits for green home improvements, including qualifying product specifics, please visit Energy Star's Tax Credit Index.