Monday, January 3, 2011

ENERGY TAX BREAKS: Energy Efficiency Tax Credits for Home Owners Included in Tax Bill

Washington, D.C., December 17, 2010—The major tax bill President Obama is expected to soon sign includes a federal income tax credit of up to $500 for home owners who make certain energy-efficiency home improvements.

The Middle Class Tax Relief Act of 2010, H.R. 4853, offers a tax credit for up to 10% of the cost of energy-efficient building envelope materials—including insulation, sealing products, certain types of roofs, and windows. Windows are subject, also, to a flat $200 limit.

The bill also incorporates these dollar limits for other types of energy efficiency upgrades, which are not subject to the 10% limit:

$50 for an advanced main air circulating fan (for an HVAC system)
$150 for certain natural gas, oil and propane furnaces and hot water boilers
$300 for “energy efficient building property,” a category that includes electric heat pumps; natural gas, propane, or oil water heaters; central air conditioners; electric heat pump water heaters; and biomass stoves for heating or water heating
The Alliance to Save Energy, a consortium of government, business, and consumer leaders advocating for energy efficiency causes, said the tax breaks would help home owners who face rising energy costs.

“But,” Alliance President Kateri Callahan said, “we’re sorely disappointed that Congress did not see fit to make the incentives more generous. That would have increased their use by consumers, to the benefit of our economy, energy security, and environment.”

Source: The Alliance to Save Energy December 17, 2010

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