Tax breaks are available to people who are making their homes more energy-efficient.
Federal Tax Credits
Consumers who purchase and install specific products can receive a tax credit for 30% of the cost, up to $1,500, for improvements “placed in service” starting January 1, 2009, through December 31, 2010.
These products include:
-energy-efficient windows
-insulation, doors, roofs
-heating and cooling equipment
Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies.
Filing
To claim the tax credit for energy efficient products “placed in service” in 2009, you will need to file the 2009 IRS Form 5695 and submit it with your 2009 taxes (by April 15, 2010). For products “placed in service” in 2010, you would take the tax credit on your 2010 taxes.
Also save your receipts and the Manufacturer’s Certification Statement for your records. A Manufacturer’s Certification Statement is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit; these are often available on the manufacturer’s website.
Tennessee’s Financial Incentives
The Tennessee Valley Authority (TVA) and its participating power distributors are now offering a production-based incentive program to Valley homeowners and businesses for the installation of renewable generation systems from the following qualifying resources: solar, wind, low-impact hydropower, and biomass called Generation Partners. The energy generated from these renewable generation systems will count towards TVA’s green power pricing program, Green Power Switch.
All new participants in the Generation Partners program will receive a $1000 incentive to offset the upfront cost of the qualifying system. For more information, visit www.generationpartners.com or call 866-673-4340.
Other Utility Programs
Other utility programs exist and are specific to area electric services. Call your local electric company for more information.
Detailed information about tax credits for energy efficiency can be sought at www.energystar.gov.