Federal Tax Credits for Energy Efficiency

2009-01-21T06:31:01-08:00

The Federal Government's Energy Star program website has a rundown of Federal Tax Credits for Energy Efficiency for consumers including those for home improvements, auto purchases and alternative energy. The incentives are as follows:

SUMMARY OF TAX CREDITS FOR HOMEOWNERS

Product Category	Product Type	Tax Credit Specification	Tax Credit	Notes
Windows & Doors	Exterior Windows and Skylights	ENERGY STAR qualified OR meets IECC¹	10% of cost, up to $200² for all windows, skylights and storm windows	All ENERGY STAR labeled windows and skylights qualify for tax credit.Learn more about ENERGY STAR qualified windows and skylights. Installation costs are not included. For tax purposes, save your receipt and either the ENERGY STAR label from all your new windows OR the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	Storm Windows	Meets IECC¹ in combination with the exterior window over which it is installed, for the applicable climate zone	10% of cost, up to $200² for all windows, skylights and storm windows	Manufacturer Certification Statement³will 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. Installation costs are not included. Manufacturer's Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	Exterior Doors	Meets IECC¹	10% of cost, up to $500²	ENERGY STAR doors will almost always qualify, except for certain parts of California⁴. Learn more aboutENERGY STAR qualified doors. Installation costs are not included. Manufacturer's Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	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	10% of cost, up to $500²	Eligibility will be confirmed by manufacturer and documented in the Manufacturer Certification Statement³ Installation costs are not included. Manufacturer's Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
Roofing	Metal Roofs, Asphalt Roofs	ENERGY STAR qualified	10% of cost, up to $500²	All ENERGY STAR labeled metal roofs qualify for the tax credit. Must be expected to last 5 years OR have a 2 year warranty. Installation costs are not included. Manufacturer's Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
Insulation	Insulation	Meets 2000 IECC & Amendments	10% of cost, up to $500²	For insulation to qualify, its primary purpose must be to insulate. (example: vapor retarders are covered, siding does not qualify). Must be expected to last 5 years OR have a 2 year warranty Installation costs are not included. Manufacturer's Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
HVAC	Central A/C	Split Systems: EER >=12.5 SEER >= 15 Package systems: EER >= 12 SEER >= 14	$300²	For a list of qualified products, go to the Consortium for Energy Efficiency product directory , click on the Air Conditioners and in the “CEE Tier” enter “Residential Tier 2.” Note — not all ENERGY STAR products will qualify for the tax credit. ENERGY STAR specification: Split Systems: EER >= 11.5 & SEER >= 14 Package systems: EER >= 11 & SEER >= 14 Manufacturer's Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	Air Source Heat Pumps	HSPF >= 9 EER >= 13 SEER >= 15	$300²	Note — not all ENERGY STAR products will qualify for the tax credit. ENERGY STAR specification: Split systems: HSPF >= 8.2 & EER >= 11.5 & SEER >= 14 Package systems: HSPF >= 8 & EER >= 11 & SEER >= 14 Manufacturer’s Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	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, up to $2,000.	All ENERGY STAR labeled geo-thermal heat pumps qualify for the tax credit. Manufacturer's Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Use IRS Form 5695 Must be “placed into service” between Jan. 1, 2008–Dec. 31, 2016.
	Gas, Oil, Propane Furnace or Hot Water Boiler	Furnaces: AFUE >= 95 Boiler: AFUE >= 95	$150²	For a list of qualifying products go to the Gas Appliance Manufacturing Association Note — not all ENERGY STAR products will qualify for the tax credit. ENERGY STAR specification: Furances: AFUE >= 90 Boilers: AFUE >= 85 Manufacturer's Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer’s Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	Advanced Main Air Circulating Fan	No more than 2% of furnace total energy use	$50²	For a partial list of qualifying products go to the Gas Appliance Manufacturing Association Manufacturer's Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
Water Heaters	Gas, Oil, Propane Water Heater	Energy Factor >= 0.80 or a thermal efficiency of at least 90%.	$300²	Note: ENERGY STAR qualified high-efficiency gas storage water heaters will not qualify for the tax credit. All ENERGY STAR qualified whole-home gas tankless and gas condensing models will qualify. ENERGY STAR criteria: Whole-Home Tankless: Energy Factor >= 0.82 Gas Condensing: Energy Factor >= 0.8 For a partial list of qualifying products go to the Gas Appliance Manufacturing Association Manufacturer's Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer’s Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
Water Heaters	Electric Heat Pump Water Heater	Same criteria as ENERGY STAR: Energy Factor >= 2.0	$300²	All ENERGY STAR qualified electric heat pump water heaters qualify for the tax credit. Manufacturer's Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
Biomass Stove	Biomass Stove	Stove which burns biomass fuel⁵ to heat a home or heat water. Thermal efficiency rating of at least 75%.	$300	Manufacturer’s Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
Cars	Hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles		Based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models	There is a 60,000 vehicle limit per manufacturer before a phase-out period begins. Toyota and Honda have already been phased out. Credit is still available for Ford, GM and Nissan. For more information visit:Fueleconomy.gov Use IRS Form 8910 for hybrid vehicles purchased for personal use. Use IRS Form 3800 for hybrid vehicles purchased for business purposes.
Cars	Plug-in hybrid electric vehicles		$2,500–$7,500	The first 250,000 vehicles sold get the full tax credit (then it phases out like the hybrid vehicle tax credits). Effective January 1, 2009.
Solar Energy Systems	Solar Water Heating	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, up to $2,000	Use IRS Form 5695 Must be placed in service before December 31, 2016.
Solar Energy Systems	Photovoltaic Systems	Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.	30% of cost, up to $2,000. After January 1, 2009 the $2,000 cap no longer applies.	Use IRS Form 5695 Must be placed in service before December 31, 2016.
Small Wind Energy Systems	Small Wind Energy Systems		30% of the cost, up to $500 per half kW of capacity (not to exceed $4,000)
Fuel Cells	Fuel Cells	Efficiency of at least 30% and must have a capacity of at least 0.5 kW.	30% of the cost, up to $1500 per half kW of power capacity	Must be placed in service before December 31, 2016. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

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 $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.

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.

California Energy Commission's New Solar Homes Partnership

2009-01-21T06:08:47-08:00

The California Energy Commission maintains a website regarding its efforts to promote the construction of new energy efficient solar homes. This website is for new construction, not existing homes. The front page of the website gives an overview of the program and discusses the definition of a Solar Home, how one can save money and the environment by utilizing solar energy and additional information for consumers, builders and those interested in formal proceedings of the Energy Commission. Looking into the site, there is more information accessible including planning for energy efficiency first.

The section regarding planning for energy efficiency starts with a policy statement on energy efficiency and a link to the California Building Energy Efficiency Standards (known as Title 24 Standards). What follows is a discussion on eligibility for incentives provided under the partnership in both Tier I and Tier II conditions, the first setting a 15 percent reduction in a home's space heating, cooling and water heating energy compared to the Title 24 Standards and the later setting a 35 percent reduction the same energy expenditure as in Tier I while combining the overall reduction with a 40 reduction in the home's air conditioning energy usage. Builders need to use the Energystar appliances to which we've all become accustomed in the new homes. At the end of this page is information on incentives available from local utilities including PG&E, San Diego Gas & Electric and Southern California Edison, determination qualification and how the standards are measured. Topics including the application process, guidebooks, workshops and training are discussed in the next indexed pages. A zip code search helps determine if the new home is in a service location of a certain utility and this is eligible to apply for incentives under this program. The utilities include Pacific Gas and Electric, San Diego Gas & Electric, Southern California Edison and Bear Valley Electric Service. Eligible equipment, which is listed in the program's guidebook is listed in a page showing eligible photovoltaic modules. An FAQ, a section on field verification (verifying energy savings) by third party inspector and a calculator which is designed to calculate incentives get their own treatments. Additional incentives for new affordable housing applicants is excerpted from the program guidebook. And finally a discussion of solar tax credits rounds out the information about this program with links available to tax incentives assistance, Energy Star tax credits, a list of state incentives and to IRS form 8908.

For more information about the New Solar Homes Partnership see the following links.

New Solar Homes Partnership Website

New Solar Homes Partnership Guidebook

New Solar Homes Partnership Workshops and Training

New Era Dawns

2009-01-19T23:07:00-08:00

As a new era dawns for America, a new era dawns for renewable energy, its proponents and SolarSanDiego.Net.

Calling for a US Energy Strategy

2007-11-29T21:00:18-08:00

Daniel M. Kammen writes in the Bulletin of Atomic Scientist about the need for a US Energy Strategy.

Over the next 50 years, progress to meaningfully address the risk of significant climate change will require an estimated 80-percent or more reduction in global greenhouse gas emissions. Global emissions now include more than 7 billion tons of carbon being pumped into the atmosphere annually, three-quarters of which come from fossil fuel combustion (with the remainder largely from land conversion and forest burning), and their rate of accumulation is increasing.

Read the entire piece here.

Fortune Mag: Grean Energy Makes Money

2007-11-29T20:40:37-08:00

"Venture investment in energy technology firms reached new highs this year, more than tripling the investment recorded for 2005, according to data released Wednesday by Thomson Financial and the National Venture Capital Association." states an article in Fortune Small Business.

Solar San Diego