Energy Efficient New Homes Tax Credit (Personal)

 

Incentive Type

Personal tax credit

Applicable Sectors

Residential

Eligible Efficiency Technologies

Water heaters, furnaces, boilers, heat pumps, central air conditioners, building insulation, windows, doors, roofs, circulating fans used in a qualifying furnace.

Eligible Renewable/Other Technologies

Biomass, stoves that use qualified biomass fuel.

Amount

30 percent

Maximum Incentive

Aggregate amount of credit for all technologies placed in service in 2009 and 2010 combined is limited to $1,500.

Program Start Date

Jan. 1, 2006

Program Expiration Date

Dec. 31, 2010

More Information

www.energystar.gov/taxcredits

Summary

The credit applies to energy-efficiency improvements in the building envelope of existing homes and for the purchase of high-efficiency heating, cooling and water-heating equipment. Efficiency improvements or equipment must serve a dwelling in the United States that is owned and used by the taxpayer as a primary residence. The maximum amount of homeowner credit for all improvements combined is $1,500 for equipment purchased during the two-year period of 2009 and 2010.

The following building envelope improvements are eligible for the tax credit:

  • Insulation materials and systems designed to reduce a home's heat loss or gain.
  • Exterior doors and windows (including skylights).
  • Pigmented metal roofs designed to reduce heat gain, and asphalt roofs with appropriate cooling granules.

The following types of heating, cooling and water-heating equipment are eligible:

  • Electric heat pump water heaters
  • Electric heat pumps
  • Central air conditioners
  • Natural gas, propane or oil water heaters
  • Natural gas, propane or oil furnace or hot water boilers
  • Advanced main air circulating fans
  • Biomass stoves that use "plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues and fibers"

Performance and quality standards for tax credit eligibility vary by technology. (See 26 USC § 25C, H.R. 1424 of 2008 and H.R. 1 of 2009) for details.

Additionally, the Energy Star website offers detailed information on qualifying products, and IRS Notice 2009-53 provides more details.

Contact

    Public Information
    U.S. Internal Revenue Service
    1111 Constitution Ave. NW
    Washington, DC 20224
    Phone: (800) 829-1040
    Website: www.irs.gov