Stimulus Tax Credits

Get requirements and deadlines for remodeling-related energy improvements and equipment.

Revised as of August 25, 2009.

Updates to chart are shown in italics.

Credit available: 30% of cost, materials only; $1,500 maximum for all improvements combined

Timeline: Must be "placed in service" (ready and available for use) Jan. 1, 2009 - Dec. 31, 2010

Windows & Skylights	Before June 1, 2009: Must meet Energy Star criteria. After May 31, 2009: U-factor and SHGC <= 0.30
Storm Windows	Must comply with IECC for applicable climate zone in combination with window over which it is installed. (Use either the 2001 Supplement to the 2000 International Energy Conservation Code [IECC] or the 2004 Supplement to the 2003 IECC.)
Exterior Doors	U-factor and SHGC <= 0.30
Storm Doors	Must comply with IECC default U-factor in combination with primary door. Awaits IRS guidance ruling.
Insulation	Must meet 2009 IECC and amendments. Must be expected to last five years or have two-year warranty. Primary propose must be to insulate. As of May 31, 2009, the IRS has not ruled on SIPs or insulated siding, but it is believed that SIPs are eligible.
Metal & Asphalt Roofs	Energy Star-qualified August 2009 Update: An update on the Energy Star website notes that, in addition to meeting Energy Star requirements, metal and asphalt roofs must also have appropriate pigmented coatings or cooling granules to qualify for the tax credit. Not all Energy Star-qualified metal and asphal roofs meet these criteria. Always check Manufacturers' Certification Statements to ensure product's tax credit eligibility.

Credit available: 30% of cost, materials and labor; $1,500 maximum for all improvements combined

Timeline: Must be "placed in service" (ready and available for use) Jan. 1, 2009 - Dec. 31, 2010

Central A/C	Split Systems: EER >=13, SEER >= 16 Package Systems: EER >= 12, SEER >= 14
Air Source Heat Pumps	Split Systems: HSPF >= 8.5, EER >= 12.5, SEER >= 15 Package Systems: HSPF >= 8, EER >= 12, SEER >= 14
Furnaces	Natural Gas or Propane: AFUE >= 95; Oil: AFUE >= 90
Hot Water Boilers	Gas, Propane, or Oil: AFUE >= 90
Advanced Main Air Circulating Fans	<=2% of furnace total energy use. If furnace or fan complies but not both, it is likely that the credit will be allowed only on the component that complies. As of May 31, 2009, the IRS had not yet ruled on this.
Water Heaters	Gas, Oil, Propane: Energy Factor >= 0.82 or minimum 90% efficiency. As of May 31, 2009, no Energy Star gas storage tanks or gas condensing water heaters qualify for tax credits.
Electric Heat Pump	Energy Factor >= 2.0 (same as Energy Star)
Biomass Stoves	Applies to stoves that burn biomass fuel for heat or hot water. Thermal efficiency rating must be at least 75% as measured using lower heating value. As of May 31, 2009, does not apply to stove inserts. July 2009 update: The IRS did not state that inserts are covered, or are not covered. Hwever, based on the EPA's practice of treating inserts and freestanding biomass stoves in a similar fashion, manufacturers may choose to include inserts.

Credit available: 30% of total cost, including labor (no maximum). Unused credits can carry over to a future tax year.

Timeline: Must be "placed in service" (ready and available for use) Jan. 1, 2009 - Dec. 31, 2016

Geothermal Heat Pumps	Closed Loop: EER >= 14.1, COP >= 3.3 Open Loop: EER >= 16.2, COP >= 3.6 Direct Expansion: EER >= 15, COP >= 3.5 Same criteria as Energy Star. As of May 31, 2009, all Energy Star geothermal heat pumps qualify for the tax credit.
Solar Water Heaters	Half of energy generated must come from the sun. Hot water must be used in the dwelling (no credit for simming pools, hot tubs). Credit applies only to solar water heating equipment, not entire water heating system. As of May 31, 2009, all Energy Star solar water heaters qualify. System must be certified by Solar Rating and Certification Corp.
Solar Electric	Must provide electricity for the residence, and must meet applicable fire and electrical code requirements.
Wind Turbines	Qualifying wind turbines must have nameplate capacity of no more than 100 kW. Credit is retroactive to Jan. 1, 2008.
Fuel Cells	Minimum efficiency of 30%, and minimum capacity of 0.5 kW. Credit capped at $500 per 0.5 kW capacity.

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