This document summarizes tax credits available for residential energy efficient improvements and alternative energy property installed in a principal residence in the US. It outlines that a 30% tax credit is available for qualifying energy efficient improvements and residential energy property, up to $1,500 total for 2009 and 2010. It also provides details on efficiency standards for improvements and defines eligible alternative energy property that qualifies for a separate 30% tax credit, including solar, wind, and geothermal energy systems. The presentation stresses the complexity of the tax credits and advises consulting a tax advisor.

1. Presented by:
Curcuru & Associates CPA PLC

2. Residential Energy Property Credit

Residential Alternative Energy Credit

These credits are available for improvements

and property installed in your principal
residence located in the U.S.

3. What type of purchases qualify?

◦ Qualifying Energy Improvements
 Involves building envelope components which are any
insulation materials or systems which are designed to
prevent heat loss or gain
 Examples include exterior windows/doors, any metal
roof with pigmented coatings, or any asphalt roof (in
2009 only) with appropriate pigmented coatings or
cooling granules.

4. What type of purchases qualify?

◦ Qualified Energy Property
 This is energy efficient building property, qualified
natural gas, propane, or oil furnace or hot water
boiler, or an advance main air circulating fan that
meets specific performance and quality standards.
 Examples: electric pump water heaters, qualified
electric heat pumps, qualified central air
conditioners, qualified stoves which use biofuels

5. How much is the tax credit?

◦ The credit in 2009 and 2010 is 30% of the sum of
the amount paid by an individual for
 qualified energy improvements
 residential energy property
For 2009 and 2010, the total credit is limited

to $1,500 over both years

6. What are the efficiency standards?

◦ While you may rely on a manufacturer’s written
certification that property qualifies for the credit, YOUR
SPECIFIC TAX SITUATION DETERMINES HOW MUCH, IF
ANY, OF THE CREDIT YOU MAY TAKE.
◦ Requirements for Energy Efficient Improvements (for
property placed in service after February 17, 2009)
 Exterior windows, skylights and doors must have a U-factor
and a solar heat gain coefficient (SHGC) of 0.30 or less
 Insulation must be designed to reduce heat loss or gain and
must meet the criteria established by the 2009 International
Energy Conservation Code (IECC)

7. What are the efficiency standards?

◦ Requirements for qualified energy property
 A minimum annual fuel utilization efficiency rate
(AFUE) of at least 90 is required for any natural
gas, propane or oil hot water boiler, or oil furnace.
The preexisting rate of at least 95 required for any
natural gas or propane furnace remains unchanged
 An electric heat pump or central air conditioner must
achieve the highest efficiency tier established by the
Consortium of Energy Efficiency (CEE)
 A natural gas, propane, or oil water heater must have
either a minimum energy factor of 0.82 or a thermal
efficiency minimum of 90 percent.

8. Clear your mind…the following slides explain a
completely separate energy credit.

9. Tax credits are available for the following

alternative energy property installed in your
principal residence located in the U.S.
The credit is equal to 30% of the expenditures

of such equipment

10. Qualified Solar Electric Property

◦ Uses solar energy to generate electricity
Qualified Solar Water Heating Property

◦ Expenditures for property which heats water for use
in a principal residence if at least half of the energy
used by the property is derived from the sun, and
which is certified for performance by the non-profit
Solar Rating Certification Corporation or
comparable entity endorsed by the state in which
the property is installed

11. Qualified Small Wind Energy Property

◦ Expenditures for property which uses a wind
turbine to generate electricity for use in a principal
residence
Qualified Geothermal Heat Pump Property

◦ Expenditures for equipment which uses the ground
or ground water as a thermal energy source to heat
the residence or as a thermal energy sink to cool
the residence

12. AS ALWAYS, THE INFORMATION IN THIS SLIDE

SHOW CONTAINS GENERAL INFORMATION.
PLEASE CONSULT A TAX ADVISOR BEFORE
ACTING ON ANY INFORMATION CONTAINED
IN THIS SLIDESHOW.
THIS IS COMPLICATED STUFF, SO DON’T SAY I

DIDN’T WARN YOU.