Home Envelope and Home Heating & Cooling Equipment

Homeowners can receive a tax credit for making envelope improvements to and installing energy-efficient heating, cooling, and water heating equipment in their primary residence. The incentive is 30% of the cost of eligible measures, with a $1,500 cap on the credit per home. The tax credit for envelope improvements is based on the cost of the materials installed (insulation, windows, sealants, etc.), not the cost of labor. The credit for home heating and cooling and water heating equipment is based on both the cost of the materials and installation labor costs. These incentives do not include measures placed in service during 2008 and will currently cover measures installed through December 31, 2010. 

For complete information consult with your tax professional or visit the ENERGY STAR website.  

• Roofs: Pigmented metal roofs and asphalt roofs with cooling granules that meet ENERGY STAR standards.
• Eligible home heating & cooling equipment includes: www.energytaxincentives.org/consumers/heating-cooling.php
• Furnaces and Boilers: High-efficiency gas and propane furnaces that meet an Annual Fuel Use Efficiency (AFUE) of 95 or higher and gas, oil, or propane boilers and oil furnaces that meet an AFUE of 90 or higher.
• Air Conditioners and Heat Pumps: Central air conditioning units must meet the highest tier standards set by the Consortium for Energy Efficiency (CEE) as of January 1, 2009, which for most systems is a Seasonal Energy Efficiency Ratio (SEER) of 16.
• Ground Source or Geothermal Heat Pumps.
• Biomass Stoves: Stoves must have a thermal efficiency of at least 75%, and be used to heat a dwelling unit or water for use in the same. The law defines biomass fuel as anything from agricultural crops, trees, wood wastes, and residues to pellets, plants, grasses, and fibers.
• Fans: High-efficiency fans for heating and cooling systems that use no more than 2% of total heating system energy use, as defined by DOE test procedure.
• Water Heaters: Gas or propane water heaters that meet an Energy Factor (EF) of at least 0.82, or a thermal efficiency of at least 90%, and electric heat pump water heaters that meet an EF of at least 2.0.