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2009 Energy Tax Credits

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2009 Energy Tax Credits Powered By Docstoc
					How to save on
your energy bill while
improving the environment!

                Presented by COYLEAN SCHLOEGEL
WASHINGTON ST. TAMMANY ELECTRIC, COOPERATIVE
           So how can I start saving?
There are three big ways residential consumers can
connect to energy savings through the stimulus:


 Energy Efficiency   Renewable Energy   Weatherization
   Tax Credits          Tax Credits      Assistance
     (2009, 2010)       (2009—2016)       Program
                                         Community Action
                                           Committees
          Weatherization pays!
Why is weatherizing (sealing air leaks, proper
insulation) your home important?
   • Heating and cooling expenses
     account for 43 percent of an
     average home’s energy bill.
   • The Department of Energy estimates
     the average U.S. home could save
     $358 a year in energy costs through
     weatherization.
Average Home Energy Costs




     Source: 2007 Buildings Energy Data Book, Table 4.2.1,
                                   2005 energy cost data.
Common Household Air Leaks
RESULT?

          “OK, I’m sold—making my
          home more efficient is a
          great idea!

          But what if I don’t have the
          money to make
          the upgrades?”
         Option 1:
Energy Efficiency Tax Credits
          Energy Efficiency Tax Credits
Get a tax credit for up to $1,500 dollars on the cost of
insulating, sealing and weather-stripping your home.
   • The credit is for 30 percent of the cost of qualifying
     improvements made to an existing home in 2009/2010.
   • There’s a $1,500 cap for BOTH years (can not receive
     $1,500 in 2009 and another $1,500 in 2010).
   • Use IRS Form 5695 to claim the credit and get a
     Manufacturer Certification Statement for your records.
           Energy Efficiency Tax Credits
How do I find out what qualifies?
  • ENERGY STAR, a joint program of the DOE
    and U.S. Environmental Protection Agency, sets
    efficiency guidelines for appliances, heating and
    cooling systems, and more.
  • A list of items qualifying for stimulus tax credits is
    available at www.energystar.gov, keyword ‘tax credits.’
   • NOTE: Not all ENERGY STAR models qualify for a tax credit!
          Energy Efficiency Tax Credits
What part of the cost is covered?

   • Installation costs are NOT covered by
     the tax credit for windows, doors,
     insulation, roofs.
   • Installation costs ARE covered for
     HVAC (Heating, Ventilation and Air
     Conditioning) systems and
     biomass stoves.
             Energy Efficiency Tax Credits
Examples of what qualifies:

Exterior Windows,     Must have a Solar Heat Gain Coefficient (SHGC)
Doors and Skylights   and U-factor less than or equal to 0.30

Storm Windows         When combined with the
and Doors
                      window/door over which it’s
                      installed, it must meet the
                      International Energy
                      Conservation Code (IECC)
                      in your climate zone.
             Energy Efficiency Tax Credits
Examples of what qualifies:




Metal, Asphalt Roofs   All ENERGY STAR metal and asphalt roofs qualify. Must
                       be expected to last 5 years or have a 2 year warranty.

Insulation             Primary purpose must be to insulate. For example, vapor
                       retarders are covered but insulated siding does not
                       qualify. Also must meet 2009 IECC and be expected to
                       last 5 years or have a 2 year warranty.
          Energy Efficiency Tax Credits
Other qualifying upgrades:
   • Central Air Conditioning
   • Air-Source Heat Pumps
   • Natural gas or propane furnace
   • Gas, propane, or oil hot water
                                          Remember
     boiler & oil furnace                  to check
                                         ENERGY STAR
   • Advanced main air circulating fan      to see
   • Select non-solar water heaters       guidelines!

   • Biomass stoves
         Option 2:
Renewable Energy Tax Credits
          Renewable Energy Tax Credits
Get a tax credit for 30 percent of the cost—no cap!—for
installing renewable energy generation.
   • The credit is for 30 percent of the cost of qualifying
     improvements made to both existing homes and new
     construction between Jan. 1, 2009 and Dec. 31, 2016.
   • There is no cap on the credit.
   • Covers material costs and installation.
   • Use IRS Form 5695 to claim the credit and get a
     Manufacturer Certification Statement for your records.
             Renewable Energy Tax Credits
Examples of what qualifies:

Geothermal             All ENERGY STAR geothermal heat pumps
Heat Pump              qualify for the tax credit.

Solar Water Heaters    All ENERGY STAR solar water heaters qualify
                       for the tax credit. Must be used in the home; not for
                       swimming pools/hot tubs.

Photovoltaic Systems   Photovoltaic systems must provide electricity for the
                       residence, and must meet applicable fire and electrical
                       code requirement.
           Renewable Energy Tax Credits
Other qualifying generation:

   • Residential Small Wind
     Energy Systems

   • Residential Fuel Cell and
     Microturbine system
     (up to $500 per .5 kW
     of power capacity )
          QUESTION:
Can I get an energy efficiency tax credit AND a
renewable energy tax credit?
   • If you meet the criteria you can do that, but
     these are not refundable credits—they can
     increase your refund by reducing the taxes
     you owe, dollar for dollar, and can be carried forward to
     reduce your taxes in following years, but you don't get a
     check for the credit amount.
   • Other tax questions? Talk to your tax advisor!
        Option 3:
Weatherization Assistance
          Weatherization Assistance
Don’t have the money to make improvements? You might
qualify for the Weatherization Assistance Program.
   • For households earning up to 200 percent of the national
     poverty level, the federal Weatherization Assistance
     Program provides an average of $6,500 in efficiency
     upgrades (previously $2,500).
   • For a family of four, that’s an income limit of $44,100.
   • Must apply through local Community Action
     Committee.
                 Weatherization Assistance




For families with more than 8 persons, add $7,480 for each additional person.
     Members who qualify for the
     Weatherization Assistance Program
     may contact:
Louisiana Housing Finance Agency
2415 Quail Drive
Baton Rouge, LA 70808
Phone: 225-763-8700
Fax: 225-763-8710
       The Weatherization Program contact is:
                  Darleen Okammor
                       Manager
            Phone: 225-763-8700 ext 234
          Email: dokammor@lhfa.state.la.us
           Question: How can you save with
           the stimulus?
Remember, there are three ways you can connect to
energy savings through the stimulus:


 Energy Efficiency   Renewable Energy   Weatherization
   Tax Credits          Tax Credits      Assistance
     (2009, 2010)       (2009—2016)       Program
                                        Community Action
                                          Committees
But wait, there’s more!
          Special Co-op programs
Washington St. Tammany Electric, Cooperative also
provides incentives for our members to make their
homes efficient!
   • Example A
   • Example B
   • For special state rebates, check the Database for
     Statewide Initiatives for Renewable Energy and Energy
     Efficiency, www.dsireusa.org.
                 Questions?
Coylean Schloegel, Washington St. Tammany Electric, Cooperative
             cschloegel@wste.coop, 985.839.3562
                        www.wste.coop

				
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