Mar 10
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Facts on the Energy-Efficiency Tax Credit
Take advantage of improved tax credits available for many energy-efficient home improvements. Find a professional remodeler at www.nahb.org/remodel for assurance of a project well done.
The Existing Home Retrofit Tax Credit (Tax Code Section 25C): Tax credits are available at 30% of the cost, up to a $1,500 lifetime limit, for installation in 2009 & 2010 (for existing homes only) of these products:
Building envelope components: (Installation costs not included)
- Insulation material or system
- Exterior window, skylight, door, storm window or storm door
- Metal or asphalt roofs
Qualified energy products: (Installation costs may be included)
- Electric heat pump water heaters
- Electric heat pumps and central air conditioners
- Natural gas, propane or oil water heaters
- Biomass burning stoves
- Natural gas and propane furnaces
- Natural gas, propane, or oil water boilers and oil furnaces
- Advanced main air conditioning fans
The Wind, Solar, Geothermal and Fuel Cell Tax Credit (Tax Code Section 25D): Tax credits are available at 30% of the cost, with no cap through 2016 (for existing homes and new construction) for:
The energy-efficiency home products must be “placed in service” between Jan. 1, 2009 and Dec. 31, 2010. The credits are only valid for improvements made to the taxpayer’s principal residence, except for qualified geothermal, solar, wind property, which can be installed on any home used as a residence by the taxpayer.
Home owners can claim the 25C and 25D credits on Form 5695 when they file their income tax returns. Check with your tax professional to ensure correct application of the energy-efficiency tax credit. Retain all receipts as well as records that include:
- Name and address of manufacturer
- Identification of the class of eligible building envelope component
- Make, model number and any other property identifiers
- A statement that the component is eligible for the credit
For more information, visit www.nahb.org/efficiencytaxcredit.
