tax incentives for energy efficiency

Green building in santa cruz

Tax Credits for High Efficiency Boilers and Water Heaters

The American Recovery and Re-investment Act offers homeowners up to $1,500 in tax credits for energy efficiency improvements to their primary residence!

Upgrade your home heating boiler or water heating system (between Jan. 1, 2009 and Dec. 31, 2010 and receive a tax credit of up to 30% of the installed cost not to exceed $1,500).

Tax credits available to homeowners include hot water boilers with efficiencies equal to or greater than 90% AFUE and water heaters with Thermal Efficiencies equal to or greater than 90%. Units must be placed into service in the taxpayer’s primary residence.

Tax Credit for Solar Thermal Water Heating

30% Federal Tax Credit for Residential & Commercial

In general, credits are available for eligible systems placed in service on or before December 31, 2016: The credit is equal to 30% of expenditures, with no maximum credit. Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Hybrid solar lighting systems, which use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight, are eligible. Passive solar systems and solar pool-heating systems are not eligible. (Note that the Solar Energy Industries Association has published a three-page document that provides answers to frequently asked questions regarding the federal tax credits for solar energy.)

Please click here to download the SEIA’s FAQ’s

Please click here to download the 5695 Tax credit form.