Disclaimer: This is not guaranteed for completeness or accuracy. Programs may require installation by specific qualified contractor(s). Eligibility and incentive amounts change over time. Contact the appropriate organizations to confirm incentive and requirements before purchasing equipment. The Energy Policy Act of 2005 (EPACT) established federal tax credits for consumers beginning in January 2006 for a variety of residential energy-efficiency investments. Most of these credits remain in effect through 2007. The federal tax credits cover:
Consumers who purchase and install certain residential energy efficient equipment can receive a federal tax credit totaling 10% of the cost, not to exceed $500. Building Envelope Components:
Heating, Cooling, and Water Heating Equipment - Purchasers of high efficiency heating, cooling, and water heating equipment can take a federal tax credit totaling 10 percent of the cost up to $300 ($150 for a boiler, $50 for an advanced main air circulating fan), as detailed below. As described above, there is a $500 cap on the credit per home over the two-year period, including the amount received for insulation and windows as described above. Unlike with the building envelope components, installation costs may be included when calculating the tax credit for this equipment. The federal credit is available for systems placed in service in 2006 or 2007 on the taxpayer's principal residence.
For solar energy equipment installed during 2006 and 2007,
consumers who install certain solar energy equipment can claim
a tax credit equal to 30 percent of the costs, with a maximum
credit of $2,000. Eligible systems include photovoltaics and
solar water heating systems used
exclusively for purposes other than heating swimming pools and
hot tubs. To qualify, solar water heaters must be certified by
the Solar Rating and Certification Corporation (SRCC) and
produce 50 percent or more of the hot water needed by the
residence. There is no certification required for PV systems.
Individuals may claim federal tax credits for either or both
types of solar systems.