Hide

Residential Energy Tax Credits

Nonbusiness Energy Property Credit

You may be able to take a credit of 30% of the costs paid or incurred in 2009 for any qualified energy efficiency improvements and any residential energy property. The credit is limited to a total of $1,500 for tax years 2009 and 2010.

Qualified Energy Efficiency Improvements

Qualified energy efficiency improvements are the following building envelope components installed on or in your main home that you owned during 2009 located in the United States if the original use of the component begins with you and the component can be expected to remain in use at least 5 years.

  • Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home when installed in or on such a home.
  • Exterior windows (including certain storm windows and skylights).
  • Exterior doors (including certain storm doors).
  • Any metal roof with appropriate pigmented coatings, or asphalt roof with appropriate cooling granules, that are specifically and primarily designed to reduce the heat gain of your home, and the roof meets or exceeds the Energy Star program requirements in effect at the time of purchase or installation.

Residential Energy Property Costs

Residential energy property costs are costs of new qualified energy property that is installed on or in connection with your main home that you owned during 2009 located in the United States. This includes labor costs properly allocable to the onsite preparation, assembly, or original installation of the property. Qualified residential energy property is any of the following.

  1. Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural gas, propane, or oil water heaters; and stoves that use biomass fuel.
  2. Qualified natural gas, propane, or oil furnaces; and qualified natural gas, propane, or oil hot water boilers.
  3. Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces.
Do you have the support you need to manage your small business bookkeeping? Schedule a 30-minute appointment to speak with a local small business adviser.