Tax Credit and Weatherization Information

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 Personal Tax Credit

Eligible Efficiency Technologies: Water Heaters, Furnaces, Boilers, Heat pumps, Air conditioners, Building Insulation, Windows, Doors, Roofs, Circulating fans used in a qualifying furnace

Eligible Renewable/Other Technologies: Biomass, Stoves that use qualified biomass fuel

Amount: 30%

Maximum Incentive: Aggregate amount of credit for all technologies placed in service in 2009 and 2010 combined is limited to $1,500

Equipment/Installation Requirements: Equipment must be new and in compliance with all applicable performance and safety standards as described in tax code

Building Envelope Improvements

Owners of existing homes receive a tax credit worth 30% of the cost of upgrading the efficiency of the building's envelope. Installation (labor) costs are not included. The following improvements are eligible for the tax credit:

• Insulation materials and systems designed to reduce a home's heat loss or gain
• Exterior doors and windows (including skylights) and
• Pigmented metal roofs designed to reduce heat gain, and asphalt roofs with appropriate cooling granules.

Heating, Cooling and Water-Heating Equipment

Taxpayers who purchase qualified residential energy-efficient equipment are eligible for a tax credit worth 30% of the system cost, including labor costs. The credit may also be applied to labor costs for assembly and original installation of eligible property. The following types of equipment are eligible:

• Electric heat pump water heaters
• Electric heat pumps
• Central air conditioners
• Natural gas, propane or oil water heaters
• Natural gas, propane or oil furnace or hot water boilers
• Advanced main air circulating fans
• Biomass stoves that use "plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers"

**Geothermal heat pumps were originally eligible for this credit, with a $300 cap. However, geothermal heat pumps are now eligible for the residential renewable energy tax credit, with no cap.

Federal Residential Renewable Energy Tax Credit

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

Amount: 30%

Maximum Incentive:

• Solar-electric systems placed in service before 1/1/2009: $2,000
• Solar-electric systems placed in service after 12/31/2008: no maximum
• Solar water heaters placed in service before 1/1/2009: $2,000
• Solar water heaters placed in service after 12/31/2008: no maximum
• Wind turbines placed in service in 2008: $4,000
• Wind turbines placed in service after 12/31/2008: no maximum
• Geothermal heat pumps placed in service in 2008: $2,000
• Geothermal heat pumps placed in service after 12/31/2008: no maximum
• Fuel cells: $500 per 0.5 kW

Carryover Provisions: Excess credit may be carried forward to succeeding tax year

Eligible System Size: Fuel cells: 0.5 kW minimum

Equipment/Installation Requirements: Solar water heating property must be certified by SRCC or by comparable entity endorsed by the state in which the system is installed. At least half the energy used to heat the dwelling's water must be from solar. Geothermal heat pumps must meet federal Energy Star requirements. Fuel cells must have electricity-only generation efficiency greater than 30%.

Solar-electric

• There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service before January 1, 2009.
• Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.
• The home served by the system does not have to be the taxpayer’s principal residence.

Solar water-heating

• There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service before January 1, 2009. \
• Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.
• 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).
• Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.
• 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%.
• 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

• There is no maximum credit for systems placed in service after 2008. The maximum credit is $500 per half kilowatt, not to exceed $4,000, for systems placed in service in 2008.
• Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.
• The home served by the system does not have to be the taxpayer’s principal residence.

Geothermal heat pumps

• There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service in 2008.
• Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.
• 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.

State Personal Tax Credit

Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Renewable Transportation Fuels, Geothermal Heat Pumps, Spent pulping liquor, Solar Pool Heating, Daylighting, Anaerobic Digestion, Ethanol, Methanol, Biodiesel , Direct-Use Geothermal Energy

Applicable Sectors: Commercial, Residential, Multi-Family Residential

Amount: 35%

Maximum Incentive:

• $1,400 - $10,500 (varies by technology); $2.5 million for commercial applications
• A maximum of $3,500 per dwelling unit for residential active space heating, combined active space and domestic water-heating systems, and passive space heating;
• A maximum of $1,400 per dwelling unit for residential solar water-heating systems, including solar pool-heating systems;
• A maximum of $10,500 per installation for photovoltaic systems (also known as PV systems or solar-electric systems), wind-energy systems or certain other renewable-energy systems for residential use;
• A maximum of $8,400 for geothermal heat pumps and geothermal equipment that uses geothermal energy for water heating or active space heating or cooling for residential purposes;
• A maximum of $2.5 million per installation for all solar, wind, hydro, geothermal and biomass applications* for commercial or industrial facilities, including PV, daylighting, solar water-heating and space-heating technologies.

North Carolina Energy Efficient Appliance Rebate Program*

North Carolina has received $8.8 million from the federal American Recovery and Reinvestment Act

The state will have two rebate programs. The first is for the purchase of ENERGY STAR appliances. The rebate will apply toclothes washers, dishwashers, refrigerators and freezers. The mail-in rebate will be for 15% of the cost of the product. The NC Energy Office plans to offer the rebates April 22-25.

The second part of this program is for heating and cooling equipment and water heaters. Beginning June 1, the state will offer a $300 mail-in rebate for the purchase of a qualifying ENERGY STAR qualified heat pump and a $200 mail-in rebate for a qualifying ENERGY STAR qualified water heater.

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.