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Tax Credit

A number of tax credits for residential energy efficiency have been renewed.

Below you will find information regarding tax credits, rebates and also weatherization offers. These are important programs to consider when making an energy- efficient upgrade, or if you are in need of some help to make your home more comfortable. To make sure you are applying for all necessary rebates and that you have the necessary information, visit www.dsireusa.org and www.energystar.gov. Contact your tax preparer for more information concerning tax credits, and your local Community Action Program for complete weatherization information.


Federal Residential Renewable Energy Tax Credit (expires December 31, 2021)

Eligible Renewable/Other Technologies: Solar Water Heating, Photovoltaics, Small Wind Turbines, Fuel Cells, Geothermal Heat Pumps

Amount:

  • 30% for systems placed in service by 12/31/2019

  • 26% for systems placed in service after 12/31/2019 and before 01/01/2021

  • 22% for systems placed in service after 12/31/2020 and before 01/01/2022

Equipment/Installation Requirements:

 

Solar-electric

 

  • Systems must provide electricity for the residence, and must meet applicable fire and electrical code requirements.

  • The home served by the system does not have to be the taxpayer’s principal residence.

 

Solar water-heating

  • Equipment must be certified for performance by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.

  • At least half the energy used to heat the dwelling's water must be from solar in order for the solar water-heating property expenditures to be eligible.

  • The tax credit does not apply to solar water-heating property for swimming pools or hot tubs.

  • The home served by the system does not have to be the taxpayer’s principal residence.

 

Fuel cells

  • The maximum credit is $500 per half kilowatt (kW).

  • The fuel cell must have a nameplate capacity of at least 0.5 kW of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%.

  • The home served by the system MUST be the taxpayer's principal residence.

  • In case of joint occupancy, the maximum qualifying costs that can be taken into account by all occupants for figuring the credit is $1,667 per half kilowatt. This does not apply to married individuals filing a joint return. The credit that may be claimed by each individual is proportional to the costs he or she paid.

 

Small wind-energy

  • Must generate no more than 100 kilowatts of electricity for residential use.

  • Tax credits include installation costs.

  • The home served by the system does not have to be the taxpayer’s principal residence.

 

Geothermal heat pumps

  • The geothermal heat pump must meet federal Energy Star program requirements in effect at the time the installation is completed.

  • The home served by the system does not have to be the taxpayer’s principal residence.

 

Program: Weatherization

Description: The Weatherization Assistance Program enables low income families to make their homes more energy efficient. Eligibility for this program has been increased to 200% over the poverty line.

The 2009 American Recovery and Reinvestment Act, better known as the Stimulus Bill, has put money toward two programs that help make weatherization a possibility.

Your first option is to apply for a 30 percent tax credit (up to $1,500) for insulating, weather-stripping and sealing your home.

Information on what qualifies for the tax credit, as well as other instructions and guidelines, can be found at www.energystar.gov, keyword: tax credit.

The second way to weatherize your home is through the Weatherization Assistance Program, which is handled by Community Action programs across North Carolina. This program assists low-income residents of the community in making the necessary weatherization repairs.

Community Assistance programs focus on conducting an energy assessment to find the most cost-effective energy improvements that need to be performed. Typical services include:

  • sealing air leaks,

  • installing insulation in attics, floors and walls,

  • sealing and insulating ducts,

  • and replacing existing lighting with energy-efficient lighting.

When able, the program will perform tune-ups and repairs to heating and cooling systems. However, Community Action and its funding is not responsible for the replacement of heating/air conditioning units.
 

Persons in Family

x 200 percent

1

$ 23,760

2

$ 32,040

3

$ 40,320

4

$ 48,600

5

$ 56,880

6

$ 65,160

7

$ 73,460

8

$ 81,780

For families with over eight members add $8,320 per person.

If you do qualify, please call the Community Action nearest you to learn more about what they can do to help make your home more energy friendly!

For information on weatherization opportunities contact Cumberland Community Action Program Inc. at 910-485-6131 (Cumberland and Sampson counties) or Johnston-Lee-Harnett Community Action at 919-934-2145 (Johnston) and 910-814-8360 (Harnett).

 
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