Sacramento Building Performance

 
The federal government’s stimulus package provides tax credits for an assortment of energy efficient home improvements.  These range from building envelope improvements like air sealing and insulation through windows, heating and cooling equipment all the way to renewable energy projects like PV solar.
 
Tax Credit or Tax Deduction?
What is the difference between the two?   A tax credit lowers your tax bill dollar for dollar. A deduction shaves money off your taxable income, so the value depends on your tax bracket.  If you’re in the 25% bracket, a $1,000 deduction lowers your tax bill by $250.  In the case of a $1,000 tax credit for the purchase of insulation materials for example, your tax bill is lowered by the full $1,000, no matter which bracket you are in. 
 

 
Available Credits

•Building Envelope – Improvements such as air sealing, weatherization and insulation are a recommended first step in improving the energy efficiency of your home.  The credit is 30% of the total up to $1,500.
•Windows – Windows doors and skylights installed after June 1, 2009 must have a U Factor of less than or equal to .30 and a SHGC of less than or equal to .30.  The credit is 30% of the total up to $1,500.
•HVAC – Improving a buildings envelope often reduces its heating and cooling load.  This allows smaller more efficient heating and cooling equipment to be installed which can offset the some of the cost. The minimum efficiency ratings for HVAC equipment are AFUE 95.0 for gas furnaces, and 16 SEER for air conditioner split systems.  The credit is 30% of the total up to $1,500.
•Water Heaters – Gas water heaters must have a minimum thermal efficiency of 90% or an Energy Factor of at least 0.82.  The credit is 30% of the total up to $1,500.
•Solar Water Heating – The hot water generated by the system must be used for the home only.   Solar heaters for pools and spas do not qualify.  The credit is for 30% of the cost with no limit.
• PV Solar Electric Systems – The requirements here are that the electricity generated be used for the home only and that the installation meets all applicable code requirements.  The credit is for 30% of the cost with no limit.
This is certainly not an all inclusive list of the available federal or local tax credits. 

For more information and detailed requirements please go to:
http://www.energystar.gov/index.cfm?c=products.pr_tax_credits
http://www.smud.org/en/rebates/Pages/index.aspx
http://www.pge.com/myhome/saveenergymoney/
 
Call Sustainable Building Performance at 916-416-0676, or email us at info@sacsustainable.com, to schedule a free consultation to discuss the benefits or to schedule your Home Performance Assessment.

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