Energy Efficiency Federal Tax Credits for Consumers:
Home Improvements
*        must be "placed in service" from January 1, 2009 through December 31, 2010
*        must be for taxpayer's principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind   energy systems (where second homes and rentals qualify)
*        $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016
*        must have a Manufacturer Certification Statement3 to qualify
*        for record keeping, save your receipts and the Manufacturer Certification Statement3
*        improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010
*        If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaic’s, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters. More.
SUMMARY OF TAX CREDITS FOR HOMEOWNERS
Product Category
Product Type
Tax Credit Specification
Tax Credit
Notes
Exterior Windows and Skylights
U factor <= 0.30
SHGC <= 0.30
30% of cost, up to $1,5002
Storm Windows
Meets IECC1 in combination with the exterior window over which it is installed, for the applicable climate zone
30% of cost, up to $1,5002
Manufacturer Certification Statement3 will list classes of exterior window (single pane, clear glass, double pane, low-E coating, etc.)4 that a product may be combined with to be eligible in specific climate zones.
Exterior Doors
U factor <= 0.30
SHGC <= 0.30
30% of cost, up to $1,5002
Not all ENERGY STAR doors will qualify. More information
Storm Doors
In combination with a wood door assigned a default U-factor by the IECC1, and does not exceed the default U-factor requirement assigned to such combination by the IECC
30% of cost, up to $1,5002
 
Metal Roofs,
Asphalt Roofs
ENERGY STAR qualified
30% of cost, up to $1,5002
All ENERGY STAR metal and asphalt roofs qualify for the tax credit. Must be expected to last 5 years OR have a 2 year warranty.
Insulation
Meets 2009 IECC & Amendments
30% of cost, up to $1,5002
For insulation to qualify, its primary purpose must be to insulate (example: insulated siding does not qualify). Must be expected to last 5 years OR have a 2 year warranty
HVAC
 
 
 
 
 
 
 
 
 
 
 
 
HVAC
 
Central A/C
Split Systems:
    EER >=13
    SEER >= 16
Package systems:
    EER >= 12
    SEER >= 14
30% of cost, up to $1,5002
For a list of qualified products, go to the Consortium for Energy Efficiency product directory, click on Air Conditioners, then in the “CEE Tier” enter “Residential Advanced Tier 3” for CAC Split Systems, and "Residential Tier 2" for CAC Package Systems and ASHPs. Note not all ENERGY STAR products will qualify for the tax credit. View ENERGY STAR criteria.
Air Source Heat Pumps
Split Systems:
    HSPF >= 8.5
    EER >= 12.5
    SEER >= 15
Package systems:
    HSPF >= 8
    EER >= 12
    SEER >= 14
30% of cost, up to $1,5002
Natural Gas or Propane Furnace
AFUE >= 95
30% of cost, up to $1,5002
For a list of qualifying products go to the Gas Appliance Manufacturing Association
Not all ENERGY STAR products will qualify for the tax credit. View ENERGY STAR criteria for furnaces, boilers.
Oil Furnace
AFUE >= 90
30% of cost, up to $1,5002
Gas, Propane, Oil Hot Water Boiler
AFUE >= 90
30% of cost, up to $1,5002
Advanced Main Air Circulating Fan
30% of cost, up to $1,5002
 
Gas, Oil, Propane Water Heater
Energy Factor >= 0.82
or a thermal efficiency of at least 90%.
30% of cost, up to $1,5002
All ENERGY STAR gas tankless water heaters will qualify. No ENERGY STAR gas storage tank or gas condensing water heaters will qualify. View ENERGY STAR criteria for water heaters. For a list of qualifying products: Air Conditioning, Heating, and refrigeration Institute (AHRI)
Electric Heat Pump Water Heater
Same criteria as ENERGY STAR: Energy Factor >= 2.0
30% of cost, up to $1,5002
All ENERGY STAR electric heat pump water heaters qualify for the tax credit.
Biomass Stove
Stove which burns biomass fuel5 to heat a home or heat water. Thermal efficiency rating of at least 75% as measured using a lower heating value.
30% of cost, up to $1,5002
 
Geo-Thermal Heat Pump
Same criteria as ENERGY STAR:
 Closed Loop:     EER >= 14.1
                            COP >= 3.3
Open Loop:      EER >= 16.2
                         COP >= 3.6
Direct Expansion:     EER >= 15
                                 COP >= 3.5
30% of the cost
All ENERGY STAR geo-thermal heat pumps qualify for the tax credit.     Use IRS Form 5695
Must be “placed into service” before December 31, 2016.
At least half of the energy generated by the “qualifying property” must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household. The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling. The system must be certified by the Solar Rating and Certification Corporation (SRCC).
30% of cost
All ENERGY STAR solar water heaters qualify for the tax credit.
Must be placed in service before December 31, 2016.
Photovoltaic Systems
Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.
30% of cost
Use IRS Form 5695  Must be placed in service before December 31, 2016.
Residential Small Wind Energy Systems
 
30% of cost
Use IRS Form 5695  Must be placed in service before December 31, 2016.
Residential Fuel Cell and micro turbine system
Efficiency of at least 30% and must have a capacity of at least 0.5 kW.
30% of the cost, up to $500 per .5 kW of power capacity
Use IRS Form 5695  Must be placed in service before December 31, 2016.
 
1Either the 2001 Supplement of the 2000 International Energy Conservation Code or the 2004 Supplement of the 2003 International Energy Conservation Code.
2Subject to a $1,500 maximum per homeowner for all improvements combined.
3A Manufacturer’s Certification is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.
4Additional information on exterior window features may be viewed at Anatomy of an Energy Efficient Window.  
 National Fenestration Rating Council:   http://www.nfrc.org/participantlist.aspx
5Biomass Fuel means any 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.
The IRS defines “placed in service” as when the property is ready and available for use.