Tips & Trends

Going Green

Choosing energy-efficient products can save families about 30% ($400 a year) while reducing our emissions of greenhouse gases.  Whether you are looking to replace old appliances, remodel, or buy a new house, you can help.  ENERGY STAR is the government’s backed symbol for energy efficiency.

Steps you can take:
  Turn off appliances and lights when you leave a room.
  Use the microwave to cook small meals (it uses less power).
  Purchase “green power” for your home’s electricity (contact your power supplier to see where and if
    it is available).
  Have leaky air conditioning and refrigeration systems repaired.
  Cut back on air conditioning and heating if you can.
  Insulate your home, water heater and pipes.

Sealing and Insulating the shell of a home – it’s outer walls, ceiling, windows, door and floors – is often the most cost effective ways to improve energy efficiency and comfort.  Insulation keeps your home warm in the winter and cool in the summer.  If your basement is unfinished, you are likely losing heat through the cement walls.  Cement is porous and absorbs heat, so the heat in your basement gets transferred to the outside air.  These walls need insulation! ENERGY STAR estimates that a skilled contractor can save homeowners up to 20% on their heating and cooling costs (or up to 10% on the total annual energy bill) by sealing and insulating.

ENERGY STAR SEAL & INSULATE  BROCHURE

WaterSense, a partnership program sponsored by the U.S. Environmental Protection Agency, makes it easy for Americans to save water and protect the environment. Look for the WaterSense label to choose quality, water-efficient products. Many products are available, and don't require a change in your lifestyle.  

Window and Siding replacement can improve efficiency, reduce maintenance and give your home better curb appeal.  Replace your current windows and siding with high-efficiency products, which may significantly reduce your heating and cooling costs and pay for themselves in the long run.  Plus, these improvements may qualify you for a tax credit.

2009 Energy Tax Credit

You as the homeowner may claim a tax credit for certain energy efficient home improvements.  Significant changes were made to the energy efficient tax credits on February 17, 2009 when President Obama signed the “Stimulus Bill” (The American Recovery and Reinvestment Act of 2009).  These changes apply to products “placed in service” in 2009.

  The tax credits that were previously effective for 2009, have been extended to 2010 as well.
  The tax credit has been raised from 10% to 30%.
  The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to
    30% of the cost.
  The maximum credit has been raised from $500 to $1,500 total for the two year period (2009-2010)  However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels
    are not subject to the $1,500 maximum
  The $200 cap on windows has been removed, but the requirements for windows have been increased
    significantly.  Not all ENERGY STAR qualified windows will qualify.

Requirements:
  Improvements must be “placed in service” from January 1, 2009 through December 31, 2010
  Improvements must be for taxpayer’s principal residence, EXCEPT for geothermal heat pumps, solar
    water heaters, solar panels and small wind energy systems (where second homes and rental qualify)
  Must have a Manufacturer Certification Statement to qualify.

Qualified products
Windows, doors, and skylights need to have a U-factor of 0.30 or less and an SHGC of 0.30 or less and must come with a manufacturer's certification statement so that the homeowner can claim the tax credit. Such a statement should include the following:

  Name and address of the manufacturer
  Identification of the product type, model number, etc.
  A statement that the component is an Eligible Building Envelope Component that qualifies for the
    credit allowed under §25C of the Internal Revenue Code.
  Indication of the climate zones for which the window qualifies in terms of the tax credit.
  A special signed declaration by an authorized person stating the correctness of the certification
   statement.

Metal and Asphalt Roofs must be ENERGY STAR qualified and must be expected to last 5 years or have a 2 year warranty.

Insulation must meet the 2009 IECC and amendments.  For insulation to qualify, its primary purpose must be to insulate (example: insulated siding does not qualify) and must be expected to last 5 years or have a 2 year warranty.

Please see the ENERGY STAR® page on Federal Tax Credits for Energy Efficiency for complete details.

Claiming the tax credit
To claim the tax credit, homeowners should keep the manufacturer's certification statement with their records. For improvements made in 2009, the tax credit can be claimed with the 2009 version of IRS Form 5695, which will be available in late 2009 or early 2010.

IRS information on the tax credit
The information on this page is not intended to constitute legal or tax advice. More comprehensive information should be reviewed on the IRS web site.