Federal Tax Credits For Energy Efficient Products

1. Federal Tax Credits ForEnergy Efficient Products

2. Not all ENERGY STAR products qualify for the tax credit • These tax credits are available for a number of products at the highest efficiency levels, which typically cost much more than standard products. • ENERGY STAR distinguishes energy efficient products which, may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time (5 yrs or less), without a tax credit.

3. Two Types of Tax Credits • Energy Efficient Products • 30% up to $1,500 • Renewable energy products (solar, wind) • 30% with no upper limit

4. 30% up to $1,500 total: • Windows and Doors • Insulation • Roofs (Metal and Asphalt) • HVAC • Water Heaters (non-solar) • Biomass Stoves * in 2009 & 2010 * ONLY for existing homes, (NOT new construction) that are your principle residence

5. Windows • Through May 31, 2009: all ENERGY STAR windows qualify. Must be purchased by May 31, 2009. • Beginning June 1, 2009: criteria is U-factor <= 0.3 and SHGC <= 0.3

6. Heating and Cooling Equipment • Central Air Conditioner • SEER >=16, EER >=13 • Air Source Heat Pump • SEER >=15, EER >= 12.5, HSPF >= 8.5 • Natural Gas or Propane Furnace • AFUE >= 95

7. Leaky Air Ducts

8. $1,500 Total • $1,500 tax credit is a total combined credit for ALL tax years (2009 & 2010). • Basically you can spend up to $5,000 during this 2 year period on a single or multiple improvements, and get 30% (or $1,500) back as a tax credit. • If you get the entire $1,500 credit in 2009, then you can't get anything additional in 2010.

9. Renewables 30% with no upper limit

10. 30% with no upper limit: • Geothermal Heat Pumps • Solar Panels • Solar Water Heater • Small Wind Energy Systems • Fuel Cells (up to $500 per .5 kW of power)** * through 2016 * for existing homes & new construction * does not have to be your principle residence, vacation homes are eligible too **no vacation homes for fuel cells

11. ARE COVERED FOR: HVAC (Heating, Ventilation and Air Conditioning) systems Biomass Stoves Water Heaters (including solar) Solar Panels Geothermal Heat Pumps Wind Energy Systems Fuel Cells ARE NOT COVERED FOR: Windows Doors Insulation Roofs  Installation costs 

12. More Information: • energystar.gov/taxcredits • FAQs on energystar.gov

13. Home Star Retrofit Rebate Program • Legislation (pending / not passed by congress yet) • Intent to stimulate job growth by creating homeowner demand • incentives scaled to promote home performance • Silver Star • Homeowner incentives for prescriptive improvement • $1000 per measure; up to $3000 per household • Gold Star • Homeowner incentives for performance based improvements • $3000 for a 20% reduction in energy use; $1000 for each additional 5% reduction • Meets HPwES – existing program sponsors well positioned to be rebate aggregators

14. Program structure Program Administrator (DOE) 5. Coordinate Inspection/Results 3. Rebate Paid (batch) 2. Rebate Submitted (batch) QA Provider Rebate Aggregator 4. Rebate Reimbursed 1. Rebate Submitted Contractor Inspectors 6. In the field Inspections on Performance & Check for Program Requirements Start: Work is performed & consumer pays contractor/provider less the rebate amount Consumer