• Unless otherwise noted, the tax credit includes cost of equipment and original installation costs.
• Must be for taxpayer’s principal residence. (Note that this does not mention New Homes or Additions. Check with your accountant if you are unsure.)
• Maximum for 2009 and 2010 for all improvements combined is $1,500 (except geothermal heat pumps, solar water heaters, solar panels, fuel cells and wind power systems, see table).
• For tax purposes, the Manufacturer’s Certification Statement and receipt are generally required. For Energy Star products, save the label.
• New home construction cannot claim credits for windows, doors, insulation, roofs, HVAC (except geothermal), non-solar water heaters.
• For state tax credits, the allowable credit cannot exceed 50% of the taxpayer’s tax liability for the year reduced by the sum of all other credits. Unused portions of the credit may be carried over for the next five succeeding years.
• Verify all tax-related information with a tax advisor.

2009 Summary of Energy-efficiency Tax Credits (Both Federal and North Carolina)

Exterior Windows & Doors, Skylights

Requirements:

• Meets International Energy Conservation Code (IECC) or Energy Star qualified product.
• U factor (heat loss) <= 0.30
• SHGC (block solar heat) <= 0.30

Incentive: Tax credit equal to 30% of cost, up to $1,500 for all improvements combined.

Fine print: Installation costs not included. Does not apply to new home construction. Not all Energy Star models qualify.

Storm Windows & Doors

Requirements: In combination with approved wood door or window.

Incentive: Tax credit equal to 30% of cost, up to $1,500 for all improvements combined.

Fine print: Installation costs not included. Does not apply to new home construction.

Metal Roofs, Asphalt Roofs

Requirements:Energy Star qualified roof expected to last 5 years or have a 2-year warranty.

Incentive: Tax credit equal to 30% of cost, up to $1,500 for all improvements combined.

Fine print: Installation costs not included. Does not apply to new home construction.

Insulation

Requirements: Primary purpose must be to insulate. Must be expected to last 5 years or have a 2-year warranty.

Incentive: Tax credit equal to 30% of cost, up to $1,500 for all improvements combined.

Fine print: Installation costs not included. Does not apply to new home construction.

Central A/C

Requirements:

• Split Systems: Energy Efficiency Ratio (EER)>=13
• Seasonal Energy Efficiency Ratio (SEER)>=16
• Package Systems: EER>=12 and SEER>=14

Incentive: Tax credit equal to 30% of cost, up to $1,500 for all improvements combined.

Fine print: Does not apply to new home construction. Not all Energy Star models qualify.

Air Source Heat Pumps

Requirements:

• Heating Seasonal Performance Factor (HSPF)>=8.5
  and EER>=12.5 and SEER>=15
• Package systems: HSPF>=8; EER>=12 and SEER>=14

Incentive: Tax credit equal to 30% of cost, up to $1,500 for all improvements combined.

Fine print: Does not apply to new home construction. Not all Energy Star models qualify.

Geothermal Heat Pump

Requirements: All Energy Star geothermal heat pumps will qualifyt.

Incentive: Federal tax credit equal to 30% of cost. Not subject to $1,500 cap

Fine print: Place in service by Dec. 31, 2016.

Water Heaters (Solar)

Requirements:

• At least half of the energy generated by the solar water heater must come from the sun.
• Water must be used in dwelling.
• Must be certified by the Solar Rating Certification Corporation (SRCC).
• For N.C. property tax exemption, the system must be new.

Incentive: Federal tax credit equal to 30% of cost. Not subject to $1,500 cap. N.C. credit up to $1,400 per dwelling.

Fine print:

• Place in service by Dec. 31, 2016. Federal credit does not apply to swimming pools or hot tubs heaters.
• For N.C. property tax exemption, system must be new. Allows no more than the amount of conventional equipment.

Water Heater (Electric Heat Pump)

Requirements: Energy factor >=2.0.

Incentive: Tax credit equal to 30% of cost, up to $1,500 for all improvements combined.

Fine print: Does not apply to new home construction.

Photovoltaic (Solar Electric) Systems

Requirements: Must provide electricity for the residence and meet fire and electrical code requirements.

Incentive: Federal tax credit equal to 30% of cost. Not subject to $1,500 cap.

Fine print: Must be new to qualify for N.C. tax credit. State tax credit equal to 35% of cost. Will not exceed $10,500 (incentive varies by technology).

Biomass Stoves

Requirements: Uses any plant-derived renewable fuel (wood, farm products, etc.) to heat home or water. Thermal efficiency rating >=75%.

Incentive: Tax credit equal to 30% of cost, up to $1,500 for all improvements combined.

Small Wind Energy Systems

Requirements: New systems only.

Incentive: Federal tax credit equal to 30% of cost. Not subject to $1,500 cap. N.C. tax credit equal to 35% of cost of wind system constructed (up to $10,500).

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