The ULTIMATE Greenovation Tax Credit & Rebate Guide
Posted on: May 22, 200912 comments so far (is that a lot?)
Residential Renewable Energy 30% Tax Credits
Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies.
So, if you install a $28,000 solar system it would only cost you $19,600. Or a $21,000 geothermal system would cost only $14,700. Throw in some state and local tax incentives and you’d be a fool not to upgrade to one of these systems.
- Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for:
Home Energy Efficiency Improvement Tax Credits
Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements “placed in service” starting January 1, 2009, through December 31, 2010. See EnergyStar.gov for a complete summary of energy efficiency tax credits available to consumers.
So, $9,000 worth of windows would cost you $7,500 after the tax credit.
- Tax credits are available at 30% of the cost, up to $1,500, in 2009 & 2010 (for existing homes only) for:
About Tax Credits
A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. Consumers can itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government.
In addition to federal tax incentives, some consumers will also be eligible for utility or state rebates, as well as state tax incentives for energy-efficient homes, vehicles and equipment. Each state’s energy office web site may have more information on specific state tax information. Click here to check out tax incentives in your state.
Check out the ENERGY STAR® page on Federal Tax Credits for Energy Efficiency for complete details.
Are Installation Costs Covered?
Installation costs ARE COVERED for:
* HVAC (Heating, Ventilation and Air Conditioning) systems
* Biomass Stoves
* Water Heaters (including solar)
* Solar Panels
* Geothermal Heat Pumps
* Wind Energy Systems
* Fuel Cells
The tax credit for HVAC, biomass stoves, and non-solar water heaters is 30% of the total cost (product + installation) up to $1,500. The law specifies installation costs include: “expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property.”
The tax credit for solar water heaters, solar panels, geothermal heat pumps, wind energy systems, and fuel cells* is 30% of the total cost (product + installation), with no upper limit. The law specifies installation costs include: “labor costs properly allocable to the onsite preparation, assembly, or original installation of the property and for piping or wiring to interconnect such property to the home.” (*The tax credit for fuel cells is 30% of the cost, but limited to $500 per .5 kW of power capacity.)
Installation costs are NOT covered by the tax credit for:
* Windows
* Doors
* Insulation
* Roofs
Sources: ENERGYSTAR.gov and IRS.gov
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May 19th, 2009 at 2:47 pm
[...] See the original post: The ULTIMATE Greenovation Tax Credit & Rebate Guide [...]
May 19th, 2009 at 8:24 pm
It is best to convert old houses and building into energy efficient structures. Why? Not only it reduces electricity bills, it also increases the comfort of the temperature inside your house.
May 28th, 2009 at 11:12 pm
There is a company in Tampa that has been installing geothermal airconditioning systems. Even in a place like Florida the systems keep the house cool.
May 29th, 2009 at 11:05 am
From Matt at GreenovationTV According to the EPA, geothermal heating and cooling systems are the world’s most efficient mechanical heating and cooling systems. As a bonus, many geothermal systems also heat your water! Geothermal works in virtually every area of the U.S. Here in Michigan, where we have warm summers and cold winters, our annual heating, cooling and hot water cost totals only $550. Check out this video to see how geothermal works and find a contractor near you: http://bit.ly/16rjbV
July 22nd, 2009 at 1:48 pm
I think it is fantastic how the stimulus funds are making a difference. They are being taken advantage of all the time with the installation of geothermal heat pumps to replace high energy heating and cooling systems.
September 18th, 2009 at 4:02 pm
[...] Click here to download your FREE Federal Tax Incentive Decoder from GreenAndSave. Also, check out the simplified Greenovation Tax Credit Guide. [...]
September 18th, 2009 at 4:03 pm
[...] getting more and more affordable to power your home with solar energy. Here’s a simple primer on how solar energy works for [...]
September 18th, 2009 at 4:04 pm
[...] Check out the FREE Ultimate Greenovation Tax Credit and Rebate Guide [...]
September 18th, 2009 at 4:05 pm
[...] tax incentive this year for just about every other green improvement for your home . . Check out the ULTIMATE GREENOVATION Tax Credit & Rebate Guide for detailed [...]
October 9th, 2009 at 1:07 pm
Thanks for helping to educate folks about the federal incentives for efficiency and renewables. In my experience in designing Zero Energy Homes, the most cost-effective standard of energy efficiency for new construction or retrofitting buildings is the Passive House Standard – a certification program developed more than a decade ago in Europe to maximize efficiency for minimal upfront cost. Its been growing exponentially since its inception and is now available in the USA, see http://www.passivehouse.us (4th annual conference Oct 16-17, 2009). It is the only building certification program I know that sets an energy consumption quota, and it is rigorous enough in enforcement that a customer can be assured of the lowest level of heating and cooling energy consumption. A 1200 sq.ft. Certified Passive House has a maximum heat consumption rate equivalent to that delivered by a typical hair blowdryer, representing a 90% energy savings over many code-compliant homes (codes vary by state).
For renewable energy systems, solar thermal systems typically have the fastest payback. In a cold, cloudy climate like my state of Michigan, I recommend evacuated tube collectors for the best winter heat production, because the vacuum minimizes heat loss, and the low mass of water in the collectors compared to other types ensures that these collectors will get up to temperature and bring solar heat into your building faster than any other type of collector. I’ve been very pleased with the system we installed on our house, by a company with US HQ in Michigan, http://www.btfsolar.com. We will also use them on our new Passive House as well, for space heating as well as domestic hot water, with the goal of achieving Zero Energy by means of a seasonal heat storage tank.
People often ask why I don’t include geothermal in my designs for off-grid Zero Energy homes, and that is because in Michigan, our coldest and cloudiest times roughly coincide, such that when the geothermal system is incapable of meeting all the loads with geothermal heat alone and would normally switch to electric resistance heating, there is the least available solar electric energy available. Of course, if one has a rural site and gets zoning approval for a tall windmill tower, or has access to hydropower, you might not have a scarcity of winter RE electricity. And grid-connected homes can use power from the utility and pay it back in summer, though we don’t yet have an equitable net-metering arrangement with the utilities in Michigan.
November 17th, 2009 at 3:37 pm
My one story home is on a small island on the Olympic Pennisula where the Winters are mild but cold — short daylight hours at 48 degrees latitude. I have decided to go with the geothermal. Windmills were a passing thought but my neighbors will never go for it.
The Navy is already harnessing the hydro off shore.
It’s great to have all these options to sort out with one or two viable ones left. Propane bills get quite expensive trying to heat a 2700 sq ft (but well insulated) home. Also: I was already planning to replace the floors.
July 19th, 2010 at 1:52 pm
Just an update on Christina’s comment, regarding net metering: the net metering laws in Michigan have recently improved such that Michigan now has one of the best net metering laws in the U.S. If you have a grid-tied system, every kWh of energy you send to the grid grants you 1 kWh of credit, which you can draw back any time later.
Michigan’s system also has unlimited rollover, so you DO NOT lose any credit at the end of the year–i.e. you can “store” energy on the grid indefinitely and NEVER lose credit for energy you’ve sent to the grid.
The only better situation would be getting paid $ for the excess generation, but in many states where that is the law, you only get paid wholesale for excess generation at the end of the year, so its arguable that Michigan’s 100% “credit” with unlimited rollover is even better than that.
Thanks to energy efficiency measures, we generate almost a megawatthour more solar energy than we use annually at http://www.DreamFarm.org, so we are “storing” our excess generation on the grid to be used by an electric car in a few years. (“Storing” is in quotes, because the energy we send to the grid is instantaneously used by our neighbors, but the energy credit is recorded by our utility company, and kept on account indefinitely.)