2010 Energy Tax Credits for Home Improvements (Insulation, Windows, More…)
One nice thing we won’t have to say goodbye to at the end of 2009 is the great tax breaks for energy saving home improvements. Congress extended the majority of the 2009 benefits most homeowners will care about through the end of 2010. Some rarer (and even more green options) stick around all the way until 2016 when, presumably, they may be renewed again.
Despite the year long reprieve on the up-to-$1500 tax credits, we recommend getting the value early. After all, the real savings from energy upgrades hits the bottom line even sooner than tax time through lower energy bills.
So what’s sticking around, and until when? Here’s the rundown from EnergyStar.gov.
2010 Extended Energy Tax Credits – Through 12/31/2010
For all qualified upgrades, the credit is 30% of the covered cost up to a $1500 total credit. For instance, if you pay $3000 for insulation (excluding installation costs), your credit would be $900. The house must be your principal residence and the credits don’t apply to new construction. Other, upgrade-specific restrictions apply, so see the site for details.
Energy Efficient Windows and Doors, including many Storm Doors and Skylights. Cost eligible for the tax credit does not include installation costs (which is OK if you’re installing windows yourself). Certain other restrictions (like U-value and IECC qualifications apply).- Water Heaters. Credit includes installation costs (or you could save more by installing the water heater yourself, if its electric); some restrictions for energy efficiency apply.
- Metal and Asphalt Roofs. Credit does NOT include installation costs. The roof must be highly energy efficient (asphalt roofs must have cooling granules, for instance).
- Insulation, whether spray foam, fiberglass, or blow-in cellulose, they’re all covered so long as they meet IECC requirements. Installation cost is NOT covered.
- HVAC Components, including certain Advanced Air Handlers, Air Force Heat Pumps, Central A/C Units, Boilers, Propane, and Gas Furnaces. Tax credits include installation costs.
- Biomass Stoves.
2016 Extended Energy Tax Credits – Through 12/31/2016
If you’re really going green, you can get 30% back with no upper limit on Geothermal Heat Pumps, Small Wind Turbines, and Solar Energy Systems. These credits apply to new construction and existing residences, as well as second homes (but not rentals).
Full Cells are also eligible for a 30% credit, but the rules are a bit more complex.
What do you think? Will the credits impact your decision to make energy upgrades?
Comments & Conversation on this Article...
35 Responses to 2010 Energy Tax Credits for Home Improvements (Insulation, Windows, More…)
December 8th, 2009 11:46 am
These are great tax credits to bring up, some homeowners may have forgotten about them. Credits like these are great for helping to reduce our overall energy usage, but also can help to boost contractor based businesses, which I believe have been one of the hardest hit sectors in this recession.
stumbled, facebooked, and twittered this article…..
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December 11th, 2009 10:54 am
Thanks, Keith! We made use of the insulation credit this year… and will probably try to get even more done next year.
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December 13th, 2009 9:19 pm
Excellent article. These credits are great incentives to improve our homes. Thanks for including the credits extended through next year and 2016.
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January 28th, 2010 4:38 pm
My home is all electric. We recently installed a propane home generator. Can this be used as a home improvement tax deduction?
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January 28th, 2010 7:12 pm
Sheila, I don’t think so… backup electrical generators do not produce energy savings for a house, and are not covered by these credits.
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January 30th, 2010 11:10 pm
What about solar attic fans? We need to replace our ventilation fans for the attic and was hoping that a solar powered one we saw at Earth Day last year will qualify. If it does qualify, does it fall in the same category as windows and we would be limited to $1,500?
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January 31st, 2010 9:40 pm
Jennifer, Unfortunately, a solar attic fan doesn’t qualify… revealing how tricky it can be to take these credits…
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February 6th, 2010 12:21 pm
I am going to have my chimney repointed sometime soon. It is disintegrating at a rapid rate. I am in a very bad financial situation and in the process of trlying to get a Mortgage Modification as I am unable to make payment as they are almost 50% of monthlly income. Is there any tax credit allowed for these kind of repairs. As of now I will have to use my entire Tax refund to repair. Thanks.
Sue
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February 8th, 2010 12:09 am
Hi Sue,
Unfortunately, I know of no tax credit for those types of repairs. Good luck on the mortgage modification.
Fred
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February 23rd, 2010 6:17 pm
In 2008, we purchased, a new roof, and we installed a tankless hot water heater. We were not allowed to claim this in 2008. Now that they re-instated the energy tax credits can we claim it in 2009.
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February 25th, 2010 6:31 pm
We own a house in Illinois and a few years ago we purchased a retirement house in New Mexico. The house was never rented. In February 2009 in preparation of our retirement and when we were still living in Illinois, we made improvements in the New Mexico home including the replacement of old glass windows with low E Pella windows. We moved to New Mexico in September 2009 and the Illinois house will be rented in April.
Question: Do we qualify for the 2009 & 2010 Energy Credits?
Thank you
JF
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February 28th, 2010 11:24 am
Is the kind of insulation that goes under siding included in the insulation credits?
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March 2nd, 2010 1:18 pm
Can we use any tools, saw blades, etc, that we used for our renovations?
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March 10th, 2010 5:35 pm
There is a basement waterproofing company advertising the tax energy credit. Can basement waterproofing qualify for the tax energy credit program?
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March 11th, 2010 9:17 pm
Mike, I’m not sure how basement waterproofing would qualify for this tax credit. Waterproofing is different than insulation.
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April 5th, 2010 2:11 pm
If we are insulating and putting up drywall to finish our basement, does both the insulation and the drywall count for the 30% tax credit? Or is it just the insulation? The drywall acts as insluatoin as well. I realized the labor portion is not included.
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April 7th, 2010 8:22 pm
We are renovating a home we inherited in 2001; it is not currently our primary residence, since I am a pastor living in church-owned housing. We will not move into the family home until I finish the major elements of the remodel. I have installed energy-efficient windows and doors in 2008 and 2009. Am I out of luck as far as energy credits are concerned?
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April 12th, 2010 1:16 pm
My fiancee and I bought a new dishwasher that had an energy star rating, and we were told by the salesman that it would apply for the credit. But our cpa said appliances do not apply. Does anyone know if our cpa’s information is true? This dishwasher was top of the line, and saves on water and heat. Any advice would be appreciated, thanks.
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July 10th, 2010 7:50 pm
I bought a brand new mobile home in 2009. When it rains it comes down over my screen door and actually leaks into the inside and runs down the inside of the screen door and is starting to mold the frame. I am going to put up a rain gutter system. Does this qualify for any type of tax credit?
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July 10th, 2010 7:56 pm
Hi Jan, I am unaware of any tax credits for rain gutters… Sorry!
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August 9th, 2010 11:31 pm
If I got energy windows installed and plan on replacing my roof, would I still qualify for both tax credits? If I can hold off on the roof until next year, I was planning on doing that, since I already got the windows installed. If I wait until next year, will there be a tax credit for roofs than??? Please advise me Thanks!:)
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October 13th, 2010 6:58 pm
I put in windows in 2009. Energy Efficient with argon gas. Can I qualify for the tax rebate?
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October 13th, 2010 8:05 pm
Margorie, I’m not sure what the rules are on claiming the credit one year in arrears. It’s probably fine, because you could just file an amended 2009 tax credit. The windows must meet certain energy efficiency requirements (argon-gas types probably do) and there is a limit on how much credit you can get back – check the sites linked above.
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October 24th, 2010 1:08 pm
Which shingles are approved for the $1,500 tax credit for 2010
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October 28th, 2010 3:55 pm
what is the likeyhood that the energy tax credit for high efficient ac/ heating units will be extended for ones installed in 2011?
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October 29th, 2010 12:18 am
Rick – your guess is as good as anyone else’s on this… I think there is a reasonably good chance for energy tax credit extensions…. maybe even a plus-up on the total deductible amount. Seems like both parties rather like the concept – lower taxes + improved energy consumption.
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November 2nd, 2010 2:20 pm
Hi Fred. If I used this credit in 2009, can I use it again in 2010?
Thanks.
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November 3rd, 2010 11:27 am
Hi Fred. If I used the credit for solar last year can I also use the $1500 credit for windows? Are these treated separately?
Thanks,
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November 3rd, 2010 6:48 pm
Jeff, My understanding is that the limits are combined for 2009/2010. So if you already used the credit up to the limit in 2009, you cannot use it again in 2010. However, if you have an unused portion of the credit (e.g., you didn’t use the full 1500), you can use the remaining portion this year. You should always check with a tax advisor, but this is my understanding.
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November 7th, 2010 8:45 am
If I commit to having a new energy efficient furnace put in (switching to gas) before December 31, 2010 but it is not installed until after the new year does it still qualify for a tax credit?
Thanks.
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November 12th, 2010 10:08 am
I claimed the full $1500 credit on my ’09 returns when I replaced windows. Now I’m going to install a brand new high efficiency HVAC system in 2011. The HVAC tech. I spoke with said I could claim the credit every two years…is that true–will I be able to claim the credit again in 2011 even though I claimed it in 2009?
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November 12th, 2010 10:08 am
I claimed the full $1500 credit on my ’09 returns when I replaced windows. Now I’m going to install a brand new high efficiency HVAC system in 2011. The HVAC tech. I spoke with said I could claim the credit every two years…is that true–will I be able to claim the credit again in 2011 even though I claimed it in 2009?
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November 15th, 2010 3:13 pm
We are purchasing a wood pellet stove, does this qualify for the tax credit?
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December 15th, 2010 1:01 pm
In order to qualify for the tax breaks, do you just need to have purchased replacement windows, or do they have to also be installed in 2010. I’m running out of time …. Thanks.
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December 28th, 2010 1:09 pm
[...] and doors, you can probably still get a tax credit in the coming year. Some less common of the tax credits for home improvements will be around all the way until 2016. From EnergyStar.gov If you purchase an energy-efficient [...]