Residential Energy Tax Credits in a Nutshell

by JC Leahy, MA Accounting

The list of items that qualify for the Residential Energy Tax Credits is actually fairly short.  Nevertheless, everyone who has done ANY home improvement  wants the tax credit.   Here's what energy-efficient items are NOT qualified for the residential energy tax credits:

Ceiling fans
Clothes washers & dryers
Compact Fluorescent Light Bulbs (CFLs)
Dehumidifiers
Dishwashers
Electric furnaces/boilers
Electric storage tank water heaters
Electric Tankless water heaters
Evaporative Coolers (swamp coolers)
Lighting (Light Fixtures, CFLs, LEDs)
Ovens / Ranges
Power Factor Correction Devices
Programmable thermostats
Refrigerators
Roof coatings
Room air conditioners
TVs
Toilets
Window Treatments
Whole house fans




And, in short, here are the items that may qualify for the residential energy tax credits:


Tax Credit 30% up to $1,500:


Biomass stoves
Heating, Ventilating, Air Conditioning
Insulation
Roofs (metal & asphalt)
Water heaters (non-solar)


Tax Credit 30% up to no limit:


Geothermal heat pumps
Wind turbines
Solar energy systems


Tax Credit 30% of cost up to $500 per .5 kW of power capacity:


Fuel cells (residential fuel cell and microturbine system)


For more detail, click here for my EARLIER ARTICLE