Energy Efficient
Personal Residence Credit
Energy efficient improvements and property purchases for your principal
residence are now eligible for a $500 personal tax credit equal to 10% of qualifying energy efficiency improvements plus the cost of residential energy property expenditures.
These qualifying improvements include items such as insulation, exterior windows, skylights and doors. Residential energy property includes natural gas, propane, or oil furnaces; hot water boilers; advanced main air circulating fans; heat pumps and central air conditioners.
Energy Efficient
New Home Construction Credit
Contractors are eligible for a credit of $2,000 per home for new construction
or manufactured homes meeting a 50% energy efficiency standard. The credit is available for energy-efficient homes located in the U.S. and sold in 2006 or 2007.
A credit of $1,000 is available for certain manufactured homes which only meet a 30% energy efficiency
standard.
Energy Efficient
Improvements Deduction
The costs of major energy-saving improvements to commercial buildings are now
eligible for a maximum deduction of $1.80 per square foot of affected space.
The qualifying property must be installed as part of interior lighting systems; heating, cooling, ventilation or hot water systems; or the building envelope, and must meet a 50% energy-reduction standard.
Energy Efficient
Business Property Credit
Various credits ranging from 10% to 30% are now available for businesses which
purchase or install qualifying solar energy property, fuel cells and
micro-turbine power plants.
Energy Efficient
Residential Property Credit
Congress has enacted up to a 30% tax credit for homeowners installing solar hot water, electricity-generating solar equipment or fuel cell property. The maximum credit is $2,000 for the solar equipment and $500 for each .5 kilowatt of fuel cell capacity. This credit is
only available for equipment used to heat your home. It is not available
on solar equipment used to heat swimming pools and hot tubs.
Alternative Fuel Vehicles
The previous $2,000 tax deduction for the purchase of hybrid vehicles has been
replaced with a tax credit that could be as high as $3,400. Alternative fuel
credits are also available on vehicles using qualifying advanced lean-burn technology and on fuel cell powered and alternative fuel vehicles.
These credits are for purchases after 2005 and the credits vary as to cut-off date
ranging from 2009 to 2014.
Energy Efficient Appliances
Manufacturers of appliances such as dishwashers, washing machines and
refrigerators will get a credit for producing energy efficient models. There is no tax break
currently in place for consumer purchases of energy efficient appliances.
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