Federal Tax Credit For Energy Efficiency Through 2016

The tax credit must be taken during the year the product was installed. As always it is a good idea to consult your tax preparer first before purchasing to make sure you will be able to claim this tax credit.

Here are the products that qualify for this tax credit and their requirements.

Geo-Thermal heat pumps that meet Energy Star requirements qualify. They will at least meet the following values.
• Closed loop EER 14.1, COP 3.3
• Open loop EER 16.2, COP 3.6
• Direct expansion EER 15, COP 3.5
• At this time water-to-water geo-thermal heat pumps do not qualify, but may in December 2009.

Solar energy systems including solar water heating ad photovoltaic systems can also qualify for the tax credit. With the solar systems, at least half the energy must be generated from the sun. It also must be certified by the Solar Rating and Certification Corporation (SRCC). All Energy Star solar water heating systems qualify for the tax credit if they are placed into service by December 31, 2016.

Small wind energy systems also qualify as long as it has a nameplate capacity of no more than 100 kilowatts. So you can put out a small wind turbine and capture some energy from that gentle breeze.

If you install a fuel cell and microturbine system you can also take advantage of the Federal tax credit for energy efficiency. If the efficiency is 30% or more and has a capacity of .5 kW it qualifies. You can claim 30% of the costs up to $50 per .5 kW of power capacity.

These energy efficient products will costs more to purchase, but will save you more money on your power bill than the items on the first part of the Federal tax credit for energy efficiency. They will also get you the most out of the tax credit that is available with no cap and a longer period of time to take advantage of it.

See how the homeowners benefit from the Federal Tax Credit for efficiently using energy.

Written by Denise Clay
Hickory, NC
Exclusive to HULIQ