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?
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20 Responses to 2010 Energy Tax Credits for Home Improvements (Insulation, Windows, More…)
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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.
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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.
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.
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?
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.
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?
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…
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
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
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.
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
February 28th, 2010 11:24 am
Is the kind of insulation that goes under siding included in the insulation credits?
March 2nd, 2010 1:18 pm
Can we use any tools, saw blades, etc, that we used for our renovations?
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?
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.
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.
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?
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.
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?
July 10th, 2010 7:56 pm
Hi Jan, I am unaware of any tax credits for rain gutters… Sorry!