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www.ase.org/taxcredits
WASHINGTON, Oct. 27 /PRNewswire-USNewswire/ -- New energy efficiency
tax credits will allow homeowners to lower both their monthly home
energy bills and their federal income taxes in 2009 as they
contend with escalating winter energy prices, the Alliance to Save
Energy said. Using the tax credits of up to $500 to make specific
energy efficiency home improvements also can make homes more
comfortable and reduce air pollution and greenhouse gas emissions, the
Alliance noted.
The energy tax credits were enacted as part of the Emergency Economic
Stabilization Act of 2008 (H.R. 1424), which the president signed on
October 3, 2008. They are largely the same as those that were in
effect in 2006 and 2007, with some new criteria for qualifying
products and equipment. Details are on the Alliance to Save Energy
website at
www.ase.org/taxcredits.
The Alliance consulted the Internal Revenue Service to confirm that
taxpayers who claimed less than the total $500 credit in 2006 and/or
2007 can claim the unused portion in 2009. However, the Alliance
strongly urges taxpayers who want to file for part or all of the new
energy tax credits to consult their own tax advisors for specific
advice.
"The Alliance worked very hard to ensure that Congress would renew the
expired federal tax credits for energy efficiency home improvements,
and we are pleased that homeowners can once again get some help from
Uncle Sam to make their homes more energy efficient and more
comfortable," said Alliance President Kateri Callahan.
"With prices for winter heating fuels going up again this winter, and
total 2008 home energy costs reaching about $2,350 for the average
U.S. household, these new tax credits provide multiple benefits for
consumers," Callahan continued. "For example, qualified insulation and
sealing materials reduce drafts and cold spots, while keeping precious
warmed air inside. And the less energy used in the home, the less
global warming pollution will be spewed into the atmosphere."
The overall $500 cap can be reached in several ways with the purchase
and installation of energy-efficient products:
-- Insulation, exterior doors, or roofs: 10 percent of the cost
of the product (but not the installation), up to $500. Includes seals
to limit
air infiltration, such as caulk, weather stripping, and foam
sealants, as well as storm doors. Roofs must be ENERGY STAR qualified
metal roofs
with pigmented coatings or ENERGY STAR qualified asphalt roofs
with cooling granules.
-- Central air conditioner, heat pump, water heater, or bio gas
(e.g. corn) stove: up to $300 towards the full purchase price,
including
installation cost. Heating and cooling equipment, including
water heaters, must meet stringent efficiency requirements - not even
all
ENERGY STAR products will qualify. (Detailed criteria are on
the Alliance website, www.ase.org/taxcredits.)
-- Exterior windows: 10 percent of the total cost, up to $200.
Includes skylights and storm windows. All ENERGY STAR qualified
windows are
eligible. Windows, doors, and insulation must meet the
regional requirements of the 2001 or 2004 International Energy
Conservation Code,
a model energy code for buildings.
-- Furnace or boiler: up to $150 towards the full purchase price,
and/or $50 for an efficient air-circulating furnace fan, including
installation
cost.
-- In addition, windows, doors, insulation, and roofs must be
expected to last at least five years (a two-year warranty is
sufficient to
demonstrate this).
There also is a separate credit, through 2016, for ENERGY STAR
qualified geothermal heat pumps - 30 percent of the cost, up to
$2,000.
Manufacturers can certify (in packaging or on the company's web site)
which of their products qualify for the tax credit. Retailers,
contractors, and manufacturers should be able to help consumers
determine what levels of insulation and what other products qualify.
All improvements must be installed in or on the taxpayer's principal
residence in the United States. Condo and co-op improvements are
apportioned to the owners. The credit cannot be taken against the
Alternative Minimum Tax (AMT).
The Alliance to Save Energy is a coalition of prominent business,
government, environmental, and consumer leaders who promote the
efficient and clean use of energy worldwide to benefit consumers, the
environment, economy, and national security.
SOURCE Alliance to Save Energy
CONTACT: Ronnie Kweller of Alliance to Save Energy, +1-202-530-2203
(O), rkweller@ase.org
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