Federal Tax Credits for Energy-Efficiency Improvements
Energy Policy Act of 2005 Summary of Tax Credits
The Federal Energy Policy Act of 2005 provides tax credits for many types of home improvements including adding insulation, energy-efficient windows and high-efficiency heating and cooling equipment.
The tax credit applies to improvements made January 1, 2006, through December 31, 2007.
Be sure to check the details of the Energy Policy Act of 2005 provisions with your tax advisor. Some of the provisions listed below may be of interest to you.
Dishwashers and clothes washers.
Receive up to a $100 tax credit for qualified appliances.
Home improvements
Receive up to a $200 tax credit for energy-efficient window replacements.
Receive up to a $300 tax credit for electric heat pumps, ground-source heat pumps, furnaces, air-circulating fans and central air conditioners that meet SEER and EER requirements.
New homes
Building a new home? There are provisions that allow up to $2,000 in tax credits to the home builder for single-family and manufactured homes that consume less than half the energy for heating and cooling than other comparable homes.
Refrigerators
Receive up to a $175 tax credit on new refrigerators.
Solar panels
Receive up to a $2,000 tax credit per system.
Hybrid vehicles
Receive up to a $2,400 tax credit for the purchase of a hybrid vehicle.
Some of the tax credits have complicated formulas that must be followed in order to receive them. Please review the Federal Tax Credit guidelines provided through the link below to determine eligibility. For more information and a chart of available tax credits, please visit Energy Star® at www.energystar.gov and Residential Energy Services Network at www.natresnet.org/taxcredits.
