Home energy tax credits are available for solar energy, energy efficiency, biodiesel and hybrid cars, home solar panels and more. See which federal home energy tax credits you can claim in 2009.
When Congress passed the financial bailout bill late last year, it included a range of federal tax credits and cash gifts for businesses -- but also a suite of new and renewed tax credits for individuals who want to make energy efficiency and renewable energy improvements to their home or cars. When President Obama signed the economic stimulus bill in February, the federal government expanded and extended some of those credits.
So what's in it for homeowners and other regular taxpayers? There are several important provisions anyone can take advantage of (changes made by the economic stimulus bill are in bold). This list includes:
$1,500 Home Tax Credits for Energy Efficiency
You can claim a home tax credit for energy efficiency improvements made in 2009 (but not for improvements made in 2008) if you installed new insulation, energy-efficient windows or an energy-efficient furnace, boiler or air conditioner.
A tax credit of up to $500 that expired in 2007 has been renewed for 2009 by the bailout bill, and expanded to $1,500 by the economic stimulus bill. It covers up to 30% (expanded from 10% by the economic stimulus bill) of the cost of a range of projects that meet certain specifications. Do $5,000 worth of qualifying work, and you not only get a $1,500 rebate, but also savings on energy bills for years to come.
The economic stimulus bill also stripped out most caps on individual home improvements, which had applied to windows, heating equipment and other energy efficiency improvements.
Note that the tax credit applies only to equipment, not labor.
Find more information about these home energy efficiency tax credits at the Alliance to Save Energy or Energy Star or Department of Energy Websites. Note that much of this information reflects the tax incentives in place in 2006 and 2007; for the most part, the 2009 tax credits are identical, but check updated criteria for which products qualify, for instance.
30% On Home Energy Tax Credits for Geothermal, Solar, Wind Turbines or Fuel Cells
The economic stimulus bill removed the $2,000 cap that had applied to geothermal heat pumps, solar panels and other home renewable energy technology. The 30% tax rebate on qualified solar energy systems remains in place on geothermal heat pumps, small wind turbines, and fuel cell systems.
Ground-source heat pumps are installed underground and use the constant 50-degree subsurface temperature to cool air or water in the summer, and heat it in the winter — both of which reduce the cost of heating or cooling year round.
In addition, the solar energy tax credit, which had been set to expire, is now good through 2016. $500 Home Energy Tax Credits for Fuel Cells or Microturbines
The tax incentive that had covered 30% of the cost of fuel cell or microturbine systems in homes, which lapsed in 2008, has been restored for 2009 and through 2016. It covers up to $500 per 0.5 kw of capacity.
$7,500 Energy Tax Credits for Plug-in Hybrid Cars
The first 200,000 buyers of plug-in hybrid vehicles from each manufacturer now qualify for a $7,500 tax rebate.
A similar tax credit for hybrid vehicles had been capped at $3,500 before the bailout bill.
$2,500 for Plug-in Electric Motorcycles or Low-Speed or Three-Wheeled Vehicles
The economic stimulus bill established a 10% tax credit through 2011 with a cap of $2,500 for new electric plug-in motorcycles, low-speed and three-wheeled vehicles. There's also a 10% tax rebate and a $4,000 cap for converting an existing vehicle to a plug-in.
$50,000 for Installing a Clean Fuel Refueling System
While few homeowners may be ready to take advantage, those who want to install a clean fuel refueling system, like a natural gas refueler or a recharging system for a plug-in electric vehicle, can now qualify for up to $50,000 -- up from $30,000 -- if the system is installed in 2009 or 2010, thanks to the stimulus bill. Go with hydrogen and the credit increases to $200,000, and you have until 2014 to take advantage of it.
Wildcard: State Energy Tax Credits
Keep your eyes out for new incentives from your state, since the bill also authorizes an $800 million government bond program that encourages states to create incentives for new and existing energy conservation and related programs. Some of that money is likely to be used toward state tax breaks and other incentives that will vary by location. Among the incentives to watch for is up to $6,500 per qualifying home in the Weatherization Assistance Program. The Department of Energy's Office of Renewable Energy and Energy Efficiency, which provides grants to states and local governments that trickle down to individuals, had its budget increased nearly 10-fold. Check out the Database of State Incentives for Renewable Energy & Efficiency for more federal, state and local grants, rebates and incentives.
AEA STUDENTS COMBINE ANCIENT JEWISH TRADITION WITH “GOING GREEN”
On Monday, February 9th, Albert Einstein Academy students and staff enjoyed a perfect blend of ancient traditions for the holiday of Tu B’Shevat and modern day connections to their school’s “Going Green” theme for the year.The holiday known as the “New Year for the Trees” dates back to the 2nd century C.E. and celebrates the trees and the fruits of the land.It has come to symbolize a kind of Jewish Earth Day reminding us how dependent we are on the earth and its produce for sustenance.
At the school’s Tu B’Shevat celebration, students and staff enjoyed fruits and foods from among the seven special species of vegetation which grow in Israel, and four cups of grape juice symbolizing winter, spring, summer and finally the harvest season, fall.The students were given small plants to nurture and enjoy at home, and AEA families have been given the opportunity to purchase trees to be planted in Israel symbolizing dedication to the greening of the land.
Michal Cherrin, AEA’s Head of School, explains how the school’s “Going Green” theme goes hand in hand with Tu B’Shevat and with Judaism’s teachings. “Judaism has a strong commitment to caring for and protecting the environment.Back in the 2nd century, our sages were saying things such as: ‘it is forbidden to live in a town where there is no garden or greenery’ and ‘if you wage war against a city, you may not destroy its fruit trees’ - long before the term ‘going green’ was on anyone’s lips.”
There are also many laws in the Torah referring to acting responsibly and compassionately toward the world around us, not wasting resources.In Jewish tradition, people have a special relationship with nature and an obligation to guard the sanctity of the trees and the environment as part of our natural world.All of this has been woven into every aspect of this year’s curriculum at AEA from the children learning and practicing “reduce-reuse-recycle,” to adopting trees on the AEA campus and charting their growth, to building birdhouses and learning about North American birds as well as their Israeli counterparts.Even Einstein’s drama club has embraced the green theme this year and will perform an adaptation of Dr. Seuss’s The Lorax which chronicles the plight of the environment.
Albert Einstein Academy has been providing an engaging, nurturing and challenging curriculum of general and Judaic studies for grades K-6 since 1970.AEA is now accepting applications for fall, 2009.For more information and to schedule a tour of the school, please call Debbie Nachlis, Director of Admissions and Development at 302.478.5026.
Kennett Square, PA, March 2, 2009 – Avrim and Vicki Topel, authors of Green Beginnings: The Story of How We Built Our Green & Sustainable Home, announced today that their home has been selected to become a USGBC Project Profile in the LEED For Homes certification program. The Green Beginnings house will become the ninth home in the nation selected to showcase homes certified by the LEED Green Building Rating System on the USGBC’s website and other educational materials.
Designed by Matthew Moger, AIA, Lyman Perry Architects, Berwyn, PA, and built by Amy Cornelius of Hugh Lofting Timber Framing of Kennett Square, Pennsylvania, the prefabricated and timber frame house was awarded the USGBC’s LEED Silver and Energy Star Qualified Home designations in October, 2008.
Project Profiles provide a comprehensive look at how select LEED projects were certified, including project costs, economic and environmental benefits, and other special features.
LEED certification provides independent, third-party verification that a building project meets the highest green building and performance measures. LEED For Homes is a green home certification system for assuring homes are designed and built to be energy- and resource-efficient and healthy for occupants. Launched in February, 2008, as of January, 2009, 1,304 homes had received LEED For Homes certification and 13,836 had registered their intent to seek certification.
The USGBC is the nation’s authoritative body providing governance and oversight for green and sustainable design and construction, and its LEED Green Building Rating System is the national benchmark for the design, construction and operations of high-performance green buildings.
About Green Beginnings
Green Beginnings is the outreach initiative of husband-and-wife team Avrim and Vicki Topel to introduce and educate people about green homes with their book, educational tours of their home, and soon-to-be-released video.
Wilmington, Del., February 9, 2009 - East Coast Greening, a home-based business powered by local “eco-moms,” burst onto the scene last fall, and despite the harsh economic times, has grown steadily for the past 6 months.Headquartered in Wilmington, these mission-driven moms are focused on helping families get the toxins out of their homes, making them healthier and safer while doing their part to improve the environment.“It is clear, says Lori Spagnolo, the group’s founder, that while the politics remain challenging, we’ve pretty much gotten a handle on reducing pollution generated by industries in our towns and cities.The caustic nature of chemical products that many of us use in our homes, however, remains looming as the much larger and more complicated threat to our personal health and the health of our air and waters.”Because the group teaches about and provides access to healthier, more effective, and less costly alternatives, it offers Delawareans (who live with one of the highest cancer rates in the nation) an important opportunity to improve their personal health and detoxify their surroundings.Moreover, it offers a win-win for those looking to green their homes and lifestyles while keeping more “green” in their wallets.
Always looking for partners, East Coast Greening invites anyone looking to make a difference while making money to join their effort.Although it is a natural fit for professionally-minded, business-savvy Moms who have found themselves at home with children, the business welcomes anyone who is willing to work and committed to the values of the company.For someone like Spagnolo, East Coast Greening offers a rare opportunity to earn corporate-level paychecks while adhering to the stringent environmental values of a non-profit.“It’s all of the money, but none of the guilt,” she offers.“I live healthy, make a difference, and make money.This just makes sense.”
Anyone interested in learning more about East Coast Greening is welcome to contact Lori at the numbers listed above, or to request additional information through the business website, www.EastCoastGreening.com