Energy Efficiency Upgrade Tax Credits For Charlotte NC Homeowners

Did you know that you can receive tax credits for energy efficiency improvements on your Charlotte, NC home?

According to the U.S. Department of Energy, “A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. Consumers can itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government.”

Some consumers are also eligible for utility or state rebates and other state tax incentives for energy-efficient home upgrades and equipment. For more information on specific state tax information and energy efficiency incentives check with your state’s energy office website.

Homeowners Tax Credit – How It Works!

You can spend up to $5,000 during the 2 year period (January 1, 2009 – December 31, 2010) on a single or multiple products and get (30% of $5,000 or $1,500) Federal Tax Credit for Energy efficiency Home Improvements. However, If take the entire $1,500 tax credit in 2009, you are not eligible for any additional credit in 2010. To qualify, home improvements must meet specific criteria such as:

• Property must be ready and available for use from January 1, 2009 – December 31, 2010.
• Property must be used for your principal residence, with the exception of solar water heaters, geothermal heat pumps, solar panels and small wind energy systems used for a second home.
• You must have a certification from the manufacturer stating that the product or component qualifies for the tax credit.

Charlotte North Carolina Home efficiency improvements can be claimed on your 2009 taxes (IRS Tax Form 5695, available late 2009 or early 2010).

Energy Efficiency Home Upgrades   

According to the U.S. Environmental Protection Agency (EPA), you can get home efficiency tax credits on the following:

• Insulation – Meets 2009 IECC & Amendments
  30% of cost up to $1500 tax credit
• Roofing – All Energy Star qualified metal and reflective asphalt shingles
  30% of cost up to $1500 tax credit
• HVAC – Central AC split systems: SEER>=14, EER>=12
  30% up to $1500 tax credit
• Windows, Doors & Skylights – U factor <=0.30, SHGC <=0.30 30% of cost up to $1500 tax credit Water Heaters – Gas, propane, oil – Energy factor >=0.82 or a thermal efficiency of at least 90% – 30% of cost up to $1500 tax credit
• Geo-thermal Heat Pumps – Closed Loop: EER >= 14.1, COP >= 3.3, Open Loop: EER >= 16.2, COP >= 3.6, Direct Expansion: EER >= 15, COP >= 3.5. All Energy Star geothermal heat pumps qualify.
  30% of cost tax credit
• Biomass Stoves – Burns biomass fuel to heat home or water heater, thermal efficiency rating of at least 75% using a lower heating value
  30% of cost tax credit
• Small Wind Energy Systems – Residential small wind turbines – nameplate capacity of not more than 100 kilowatts
  30% of cost tax credit.
• Solar Water Heating – At least half of the energy must come from the sun. You may only claim what you spend on the solar water heating system property. The water must be used within the household. Water system must be certified by the Solar Rating and Certification Corporation (SRCC). Credits can’t be claimed to heat pools or hot tubs.
  30% of cost tax credit
• Fuel Cells – Residential fuel cell and micro-turbine system- Efficiency of at least 30% and capacity of at least 0.5kW
  30% of cost up to $1500 tax credit
• Efficient Cars – Hybrid gasoline-electric, battery-electric, diesel alternative fuel and fuel cell vehicles – Credit is determined by vehicle weight, fuel economy and technology compared to base year models. Tax credit will be phased out for each manufacturer once they have sold 60,000 eligible vehicles. Credit is still available for GM, Ford and Nissan. As of January 1, 2009, there is a new tax credit for plug-in hybrid electric vehicles, starting at $2,500 up to $7,500 for cars and trucks (based on the capacity of the battery system).

Charlotte North Carolina Certified EcoBroker Real Estate Professional

Leigh Brown is a real estate agent and EcoBroker Certified® professional located in Charlotte, NC. Leigh is dedicated to helping her clients buy homes in Charlotte, NC that are energy efficient and environmentally sensitive in design.  She also helps clients market their real estate properties in Charlotte, NC with green features. If you’re looking to buy property in Charlotte North Carolina, contact Leigh Brown, EcoBroker Certified® professional.