During the last newsletter I wrote about the tax savings of installing energy-saving equipment, and I have received a lot of questions on this topic lately.
Firstly, the tax credit is available for 2009 and 2010. Although the total credit available is a combined $1,500 during both years. For example, if you purchased windows for $4,000 during 2009 you will receive a tax credit of $1,200 on your 2009 taxes (30% of $4,000). Then, if during 2010 you insulate your house for $1,000, you will receive a credit of $300 on your 2010 taxes, for a combined credit limit of $1,500.
What qualifies exactly?
The cost of windows, doors, and metal or asphalt roofs that meet or exceed the Energy Star program requirements qualify. Installations costs do not count towards the cost.
A natural gas, propane or oil water heater that has an energy factor of at least 0.80 or a thermal efficiency of at least 90%. For property placed in service after February 17, 2009, the property must have an energy factor of at least 0.82.
A central air conditioner that achieves the highest efficiency tier that has been established by the CEE as in effect on January 1, 2006. For property placed in service after February 17, 2009, the property must achieve the highest efficiency tier established by the CEE as in effect on January 1, 2009.
A natural gas, propane, or oil furnace or hot water boiler that achieves an annual fuel utilization efficiency rate of at least 95. For property placed in service after February 17, 2009, the annual fuel utilization efficiency rate is reduced to 90.
Also, check PSE&G’s website to find out if your purchase qualifies for state rebates.
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