Energy Efficiency Pays

Tax Credits for Existing Home Energy Efficiency Improvements:

Existing home owners can receive a tax credit equal to 30% of the amount paid or incurred by the taxpayer for qualified energy-efficiency improvements installed during the taxable year through 2010, capped at $1,500 on any property qualifying for the credit

For tax purposes, save your receipt and the Manufacturer’s Certification Statement. Use IRS Tax Form 5695 (version 2009).

NOTE: For insulation to qualify, its primary purpose must be to insulate. It must be expected to last five years OR have a two-year warranty, installation costs are not included. A Manufacturers’ Certification Statement is required. For more information, visit www.biobased.net/taxcredit/index.php

Builder Tax Credit:

Home builders can receive a $2,000 tax credit for a new, energy-efficient home that achieves 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements. At least 1/5 of the energy savings must come from building envelope improvements. Limited to new U.S. homes whose construction is substantially completed after August 8, 2005 and that are acquired from the eligible contractor for use as a residence from January 1, 2006 through December 31, 2009.

Eligible contractors should fill out IRS Form 8908.

NOTE: This credit also applies to contractors of manufactured homes conforming to Federal Manufactured Home Construction and Safety Standards. There also is a $1,000 tax credit to the producer of a new manufactured home achieving 30% energy savings for heating and cooling over the 2004 IECC and supplements (at least 1/3 of the savings must come from building envelope improvements), or a manufactured home meeting the requirements established by the EPA under the ENERGY STAR program.

Commercial Tax Deduction:

Owners or designers of new or existing commercial buildings may receive a tax deduction of up to $1.80 per square foot for new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001, available for systems “placed in service” from January 1, 2006 through December 31, 2013.

NOTE: Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems.