2. Residential Energy Property Credit
Residential Alternative Energy Credit
These credits are available for improvements
and property installed in your principal
residence located in the U.S.
3. What type of purchases qualify?
◦ Qualifying Energy Improvements
Involves building envelope components which are any
insulation materials or systems which are designed to
prevent heat loss or gain
Examples include exterior windows/doors, any metal
roof with pigmented coatings, or any asphalt roof (in
2009 only) with appropriate pigmented coatings or
cooling granules.
4. What type of purchases qualify?
◦ Qualified Energy Property
This is energy efficient building property, qualified
natural gas, propane, or oil furnace or hot water
boiler, or an advance main air circulating fan that
meets specific performance and quality standards.
Examples: electric pump water heaters, qualified
electric heat pumps, qualified central air
conditioners, qualified stoves which use biofuels
5. How much is the tax credit?
◦ The credit in 2009 and 2010 is 30% of the sum of
the amount paid by an individual for
qualified energy improvements
residential energy property
For 2009 and 2010, the total credit is limited
to $1,500 over both years
6. What are the efficiency standards?
◦ While you may rely on a manufacturer’s written
certification that property qualifies for the credit, YOUR
SPECIFIC TAX SITUATION DETERMINES HOW MUCH, IF
ANY, OF THE CREDIT YOU MAY TAKE.
◦ Requirements for Energy Efficient Improvements (for
property placed in service after February 17, 2009)
Exterior windows, skylights and doors must have a U-factor
and a solar heat gain coefficient (SHGC) of 0.30 or less
Insulation must be designed to reduce heat loss or gain and
must meet the criteria established by the 2009 International
Energy Conservation Code (IECC)
7. What are the efficiency standards?
◦ Requirements for qualified energy property
A minimum annual fuel utilization efficiency rate
(AFUE) of at least 90 is required for any natural
gas, propane or oil hot water boiler, or oil furnace.
The preexisting rate of at least 95 required for any
natural gas or propane furnace remains unchanged
An electric heat pump or central air conditioner must
achieve the highest efficiency tier established by the
Consortium of Energy Efficiency (CEE)
A natural gas, propane, or oil water heater must have
either a minimum energy factor of 0.82 or a thermal
efficiency minimum of 90 percent.
8. Clear your mind…the following slides explain a
completely separate energy credit.
9. Tax credits are available for the following
alternative energy property installed in your
principal residence located in the U.S.
The credit is equal to 30% of the expenditures
of such equipment
10. Qualified Solar Electric Property
◦ Uses solar energy to generate electricity
Qualified Solar Water Heating Property
◦ Expenditures for property which heats water for use
in a principal residence if at least half of the energy
used by the property is derived from the sun, and
which is certified for performance by the non-profit
Solar Rating Certification Corporation or
comparable entity endorsed by the state in which
the property is installed
11. Qualified Small Wind Energy Property
◦ Expenditures for property which uses a wind
turbine to generate electricity for use in a principal
residence
Qualified Geothermal Heat Pump Property
◦ Expenditures for equipment which uses the ground
or ground water as a thermal energy source to heat
the residence or as a thermal energy sink to cool
the residence
12. AS ALWAYS, THE INFORMATION IN THIS SLIDE
SHOW CONTAINS GENERAL INFORMATION.
PLEASE CONSULT A TAX ADVISOR BEFORE
ACTING ON ANY INFORMATION CONTAINED
IN THIS SLIDESHOW.
THIS IS COMPLICATED STUFF, SO DON’T SAY I
DIDN’T WARN YOU.