Current Federal Income Tax Credits
Residential Energy Efficient Property (Expires December 31, 2016)
The following products may be eligible for Federal tax credits. The allowed credit is 30% of the expenditure. These improvements may be made on new or existing homes. Most will qualify for either principal residence or second home. Rental property does not qualify. Specific guidelines on the property and certification can be found at www.energystar.gov.
Solar electric property: Solar panels use the energy from the sun and convert it into electricity. Must meet applicable fire and electrical code standards.
Solar water heating property: Solar water heating uses the suns thermal energy to heat water. Must be SRCC certified and half of energy used to heat the house must be from solar energy.
Fuel cell property: Through the use of hydrogen, fuel cells offer cleaner and more efficient alternatives to gas and fossil fuels. Fuel cells must have electric only generation greater than 30 percent. **Primary Residence only
Small wind energy property: A wind turbine collects kinetic energy from the wind and converts it into electricity.
Geothermal heat pump property: Equipment that uses the ground or ground water as a thermal energy source to heat or as a thermal sink to cool.
Non Business Energy Property Credit (Expires December 31, 2011)
The following products may be eligible for Federal tax credits. The allowed credit and limitations differ with each product. The maximum credit for all improvements made in 2011 is $500. This cap includes any credit taken on prior year returns. The improvements must be made on existing homes that are used as the taxpayer’s primary residence. Specific guidelines on the property and certification can be found at www.energystar.gov.
Electric heat pump water heaters and heat pumps: Water heating can account for 15 – 25% of the energy in your home. A $ 300 credit is available based on certain efficiency requirements.
Biomass fuel stoves: Biomass stoves burn biological material like wood, wood wastes (like wood pellets), plants, grasses, and other fibers. This is more efficient and leaves little to no sulfuric waste and helps lessen acid rain. Thermal efficiency ratio of at least 75%. A $300 credit is available based on certain efficiency requirements.
High-efficiency central air conditioners: Ask your contractor to see the Manufacturer Certification Statement for the equipment you are about to purchase. A $300 credit is available based on certain efficiency requirements.
Natural gas, propane, or oil water heaters, boilers, furnaces: Heating units that use water circulated throughout the home in the form of baseboard heating units or radiators. The credit ranges from $150 – $300 depending upon energy factors, thermal efficiency or fuel utilization rates.
Advanced main circulating air fans (used in furnaces): A high efficiency fan that blows the air your furnace heats up through your duct system. They are required to use less than 2% of the furnaces total energy. A $50 credit is available.
Eligible building envelope components:
Insulation materials and systems: You can receive a credit for purchase of additional insulation for your home. The credit is equal to 10% of the purchase cost up to $500, but does NOT include installation costs.
Exterior windows and doors: Energy efficient windows, doors, and skylights can be installed to reduce the cost of your energy bills. The credit is equal to 10% of the qualified cost up to $500, but on windows the maximum credit is $200. This does NOT include the cost of installation.
Certain metal and asphalt roofs: Metal and asphalt roofs can reflect more of the sun’s rays which in turn will lower the roof surface temperature by up to 100 degrees. This mean less heat transferred into your home, and less on cooling bills. Eligible credits can be 10% of the purchasing costs, up to $500, but does NOT include installation costs.
Current New York Income Tax Credits
- Solar energy system equipment credit: Credits available up to $5,000 for the purchase and installation of a qualified solar energy system in your principal residence. Visit http://www.tax.state.ny.us/ for more information and forms.
- Clean heating fuel tax credit (Expires December 31, 2011)
Refundable tax credit for taxpayers on the purchase of bioheat used for residential space heating or hot water production. Visit http://www.tax.state.ny.us/ for more information and forms.
Current Federal and New York Loan Programs
- Energy efficient mortgages – Federal: These are typically used to purchase a home that is already energy efficient. An EEM credits a home’s energy efficiency in the mortgage. Have a home energy rater conduct a home energy rating before financing is approved. An EEM gives borrowers the option to finance energy efficient items for their home as well. Visit http://www.energystar.gov/ for more information.
- New York residential loan funds: Reduced loans to individuals through participating lenders for the financing of renovation or construction projects that would increase a home’s energy efficiency. The level of reduction could be up to 4%. Some rules and regulations apply. Visit www.nyserda.org/resloanfund.asp for more information.
Current New York Rebates and Incentives
Residential – http://www.getenergysmart.org/
- Property tax exemptions: Qualifying homes are exempt from real property taxation to the extent that the energy efficient addition would increase the home value.
- NYSERDA rebates: Rebates given for qualified energy efficient home and land improvements. Visit http://www.nyserda.org/ for more information.
- Sales tax incentives: Purchases of solar energy systems are exempt from state sale’s tax. This applies to all solar energy systems that use solar radiation to produce energy. It does not apply to solar pool heating or other recreational applications.
This content was made possible in part by
Buffamante Whipple Buttafaro, PC
201 West Third Street, Suite 300
Jamestown, NY 14701
Tel: (716) 664-5104
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The information presented does not constitute professional tax advice or other professional tax guidance. Please consult your personal tax advisor.