Federal Energy Tax Credits

Are you planning energy improvement projects for your home? Consumers who purchase and install specific products such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment for the home can receive a one-time tax credit of up to $500 in total over the lifetime of the tax credit (2006, 2007 and 2009).

Improvements must be installed in or on the taxpayer's principal residence in the United States. You can take these home improvement tax credits for improvements made between January 1, 2009 and December 31, 2009. (Improvements made in 2008 are not eligible.)

Here are some examples of anticipated tax savings for energy-efficient home improvements :

exterior windows (10% of cost, maximum $200)
furnaces or boilers ($150)
advanced main air circulating fans ($50)
heat pumps ($300)
central air conditioners ($300)
water heaters ($300)
exterior doors (10% of cost, maximum $500)
heat-reducing metal roof (10% of cost, maximum $500)
insulation (10% of cost, maximum $500)
solar water heaters and other photovoltaic property (30% of cost, max $2,000)

Building envelope components (such as wall, ceiling and basement insulation) must meet the requirements of the International Energy Conservation Code (IECC), a model energy code for buildings.

There are qualifications for each of these credits. We recommend reading more about the Energy Policy Act before claiming home energy efficiency tax credits.

We also recommend consulting a tax expert before purchasing or installing energy efficiency improvements for your home.

Return to Energy Efficiency Tips