- 2 reads
The American Recovery Act bill sets aside $4.3 billion for improving the energy efficiency of homes in 2009 and 2010, but you have to know how to get that money. A lot of that money will be distributed as tax credits on the installation of new, more energy-efficient products that will help wean the United States off of its dependence on fossil fuels.
The cash for clunkers appliance program allocates $300 million for replacing your old energy inefficient appliances with new ENERGY STAR-rated ones. To be eligible for the tax credit for improving energy-efficiency of a home, you must purchase and install products with very specific standards. There are standards for which home improvements can qualify for the tax credit. Listed below are a few examples of the standards for products included in this program.
Gas, Oil, or Propane Water Heater
These products must have an energy factor of .82 or higher, or they can have a thermal efficiency rate of at least 90 percent. All ENERGY STAR tankless gas models will qualify for the tax credit; however, not all gas storage or gas condensing options are covered.
Electric Heat Pump Water Heater
For this product to qualify for a tax credit, it must simply adhere to the ENERGY STAR criteria, which is an energy factor at or above 2. All ENERGY STAR qualified electric heat pump water heaters qualify for the tax credit.
Central Air Conditioning (CAC)
There are two systems that are covered by a tax rebate that can deliver central air conditioning to the home. There are split systems and package systems. For split systems, the Energy Efficiency Ratio (EER) must be at or above 13, while the Seasonal Energy Efficiency Ratio (SEER) has to be at or above 16. For Package Systems, the EER needs to be at or above 12, while the SEER must not go below 14.
This free Federal Tax Incentive Decoder will help guide you through the entire list of requirements to help ensure you receive all of the tax credits you deserve.
