Welcome to Home Imp Tax Credits

Tax Credits for Homeowners

First time home buyers are not the only ones the government is giving tax credits too. As a homeowner, certain improvements you make to your home can qualify you for some tax credits as well.

Tax credits are available at 30% of the cost, up to $1,500 in 2009 and 2010 (for existing homes only) for:

Windows and Doors
Insulation
Roofs (Metal and Asphalt)
HVAC
Water Heaters (non-solar)
Biomass Stoves

Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes and new construction) for:

Geothermal Heat Pumps
Solar Panels
Solar Water Heaters
Small Wind Energy Systems
Fuel Cells

Rules and Guidelines for Home Improvement Tax Credits:

Must be placed in service from January 1, 2009 through December 31, 2010
Must be for taxpayer's principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes qualify)
$1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 and 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016.
Must have a Manufacturer Certification Statement to qualify
For record keeping, save your receipts and the Manufacturer Certification Statement
Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) - use IRS Tax Form 5695 (2009 version) - it will be available late 2009 or early 2010.
If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAR, or non-solar water heaters.

Summary of Tax Credits for Homeowners

Product Category	Product Type	Tax Credit Specifications	Tax Credit	Notes
Insulation	Insulation	Meets 2009 IECC & Amendments	30% of cost, up to $1,500	For insulation to qualify, its primary purpose must be to insulate (example: :insulated siding does not qualify). Check to see if you have Home Performance with ENERGY STAR in your areas. Adding insulation to your home is covered
Windows & Doors	Exterior Windows and Skylights	U factor <=0.30 SHGC <=0.30	30% of cost, up to $1,500	Not all ENERGY STAR labeled windows and skylights qualify for tax credit. More information
	Storm Windows	In combination with the exterior window over which it is installed: 1) has a U-factor and SHGC of 0.30 or below 2) Meets the IECC	30% of cost, up to $1,500	FAQ on storm doors and storm windows.
	Exterior Doors	U factor <=0.30 SHGC <=0.30	30% of cost, up to $1,500	Not all ENERGY STAR doors will qualify. More information
	Storm Doors	In combination with a wood door over which it is installed: 1) has a U-factor and SHGC of 0.30 or below 2) Meets the IECC	30% of cost, up to $1,500	FAQ on storm doors and storm windows.
Roofing	Metal Roofs, Asphalt Roofs	All ENERGY STAR qualified metal and reflective asphalt shingles	30% of cost, up to $1,500	FAQ on roofs that qualify for the tax credit
HVAC	Central A/C	Split Systems: EER >=13 SEER>=16 Package Systems: EER >=12 SEER >=14	30% of cost, up to $1,500	FAQ on Central AC's that qualify for the tax credit FAQ on Air Source Heat Pumps that qualify for the tax credit Note -- not all ENERGY STAR products will qualify for the tax credit. View ENERGY STAR criteria
	Air Source Heat Pumps	Split Systems: HSPF >=8.5 EER >= 12.5 SEER >=15 Package Systems: HSPF >=8 EER >=12 SEER >=14	30% of cost, up to $1,500
	Natural Gas or Propane Furnace	AFUE >=95	30% of cost, up to $1,500	FAQ on Furnaces and Boilers that qualify for the tax credit. Note -- not all ENERGY STAR products will qualify for the tax credit. View ENERGY STAR criteria for furnaces, boilers.
	Oil Furnace	AFUE >=90	30% of cost, up to $1,500
	Gas, Propane, or Oil Hot Water Boiler	AFUE >=90	30% of cost, up to $1,500
	Advanced Main Air Circulating Fan	No more than 2% of furnace total energy use.	30% of cost, up to $1,500	Read this FAQ if the fan qualifies, but the furnace does not.
Water Heaters	Gas, Oil, Propane Water Heater	Energy Factor >=0.82 or a thermal efficiency of at least 90%	30% of cost, up to $1,500	FAQ on Water Heaters that qualify for the tax credit View ENERGY STAR criteria for water heaters.
Water Heaters	Electric Heat Pump Water Heater	Same criteria as ENERGY STAR: Energy Factor>=2.0	30% of cost, up to $1,500
Biomass Stove	Biomass Stove	Stove which burns biomass fuel to heat a home or heat water. Thermal efficiency rating of at least 75% as measured using a lower heating value.	30% of cost, up to $1,500	FAQ on biomass stoves.
Geo-Thermal Heat Pump	Geo-Thermal Heat Pump	Same criteria as ENERGY STAR: Close Loop: EER >=14.1 COP >=3.3 Open Loop: EER >=16.2 COP >-3.6 Direct Expansion: EER >=15 COP >=3.5	30% of cost	All ENERGY STAR geo-thermal heat pumps qualify for the tax credit. Must be placed in service before December 31, 2016.
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 dewelling. the system must be certified by the Solar Rating and Certification Corporation (SRCC).	30% of cost	All ENERGY STAR solar water heaters qualify for the tax credit. 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	Must be placed in service before December 31, 2016.
Small Wind Energy Systems	Residential Small Wind turbines	Has nameplate capacity of not more than 100 kilowatts.	30% of cost	Must be placed in service before December 31, 2016.
Fuel Cells	Residential Fuel Cell and microturbine system	Efficiency of at least 30% and must have a capacity of at least 0.5kW.	30% of cost, up to $500 per .5 kW of power capacity	Must be placed in service before December 31, 2016.

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