Residential Energy-Efficiency Federal Tax Credits
Homeowners may qualify for federal tax credits for energy efficiency under The American Recovery and Retirement Act of 2009.
Who is eligible for tax credits?
Existing homeowners are eligible for tax credits up to a maximum of $1,500 for making energy-efficient home improvements. Additional tax credits may be available for solar energy systems along with builders of new homes. Refer to the information below or the American Council for an Energy-Efficient Economy (ACEEE) matrix (PDF, 44 KB).
Homeowners
Tax credits are available up to 30 percent of the cost of the project (up to a maximum of $1,500 in 2009 and 2010 for existing homes*+) for:
- Insulation, duct sealing and infiltration reduction
- Energy-efficient windows and skylights
- High efficiency central air conditioners and air-source heat pumps
- High efficiency gas furnaces and boilers
- High efficiency water heaters
* Specific energy efficiency requirements apply
+ Maximum total per existing home is $1,500
Sources
When does the home improvement project need to be completed?
Home improvement projects must be completed and “placed in service” between January 1, 2009 through December 31, 2010.
Note: “Placed in service” is defined by the Internal Revenue Service (IRS) as when the property is ready and available for use.
What should I do?
Save all your home improvement project receipts and equipment documentation. Consult the IRS or your tax advisor.
PLEASE NOTE: A Manufacturer’s Certification Statement may be needed from the manufacturer certifying the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these certifications on their Web site to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.
Where can I find more information on federal tax incentives?
Complete and updated information about tax credits can be found on the Tax Incentive Assistance web site. Information on energy-efficient products can be found on the ENERGYSTAR web site. PG&E has made every effort to describe the tax credits accurately; however, PG&E cannot provide specific tax advice and recommends that you contact a tax professional with specific questions.
More information for PG&E homeowners
More information for builders of residential new homes
