Federal Programs
Introduction
The federal government offers tax credits on certain efficiency upgrades and
renewable energy systems to help you save on utility bills and protect the
environment. The tax credit amounts recently increased, so be sure to review
the information here and see if you qualify. You can also read about several
types of energy efficient and renewable energy mortgages.
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Federal Programs
Residential
Energy Efficiency Tax Credit
You may qualify for this tax credit if you took steps to make your home more
energy efficient between January 1, 2009 and December 31, 2010. Tax credits are
available at 30 percent of the cost, up to $1,500, for select windows and
doors, insulation, roofs (metal and asphalt), HVAC equipment, water heaters,
and biomass stoves. Homeowners can receive this credit up to the total amount
spent on the equipment. This credit may also be used toward labor costs for
assembly and original installation.
You can also claim a maximum of $500 for all energy efficiency improvements you made in 2006 and 2007. Note that equipment purchased or installed during 2008 is not eligible for this credit.
You may qualify for these credits if:
Improvements made in 2009 will be claimed on your 2009 taxes (filed by April
15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late
2009 or early 2010.
• Your home is
located in the United States;
• Your home is
considered your primary residence;
• You improved
your home’s efficiency; or
• You purchased
and installed energy efficient equipment for your home
• You plan to
use the energy efficiency improvements or equipment for at least five years
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Federal Programs
Residential
Energy Efficiency Tax Credit
If you are building a new home, you can qualify for the tax credit for
geothermal heat pumps, photovoltaics, solar water heaters, small wind systems
and fuel cells, but not the tax credits for windows, doors, insulation, roofs,
HVAC, or non-solar water heaters.
For more detailed information on qualifying products, visit the Energy Star® website.
For further guidance, see Internal Revenue Service Notice (IRS) 2006-26. Note that IRS Tax Form 5695 (version 2009) will be available in late 2009 or early 2010.
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Federal Programs
Residential
Renewable Energy Tax Credit
Tax credits are available at 30 percent of the cost, with no upper
limit through 2016 (for existing homes & new construction) for geothermal heat
pumps, solar panels, solar water heaters, small wind energy systems, and fuel
cells. Your expenses may include system assembly, labor costs for onsite
preparation or original system installation, and the piping and wiring required
to interconnect the system to your home. Note that any subsidized energy
financing you receive may not be included as expenditure under this tax credit.
If your federal tax credit exceeds tax liability, the amount in excess may be carried over to the following taxable year.
Your home may qualify if:
For more detailed information on qualifying products, visit the Energy Star®
website.
• It is located
in the United States;
• It is used by
you as a residence; and
• You install
one of the qualifying systems listed below
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Federal Programs
Fuel
Efficient Vehicle Tax Credits
You may qualify for a federal income tax credit if you purchase a fuel
efficient vehicle for personal or business use. The tax credit is calculated
based on a formula which takes into account fuel economy, technology and
vehicle weight compared to base year models.
Your vehicle may qualify if it is:
Visit the government’s
site on fuel efficient vehicles for more information, or click on one
of the above categories.
•
Diesel
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Federal Programs
Energy
Efficient and Renewable Energy Mortgages
If you made your current home more energy efficient, built a new energy
efficient home, or installed renewable energy technology, such as solar, wind,
and/or geothermal in your home, you may qualify for a larger
mortgage loan.
There are three types of energy efficient mortgages available:
One
Conventional energy efficient mortgages are available through private lenders who sell their loans to Fannie Mae and Freddie Mac. The lender is allowed to increase your mortgage loan by an amount equal to your home’s estimated energy savings. If you get an energy efficient mortgage through Fannie Mae, your home’s value will be adjusted to reflect the value of the energy efficient measures.
Conventional energy efficient mortgages are available through private lenders who sell their loans to Fannie Mae and Freddie Mac. The lender is allowed to increase your mortgage loan by an amount equal to your home’s estimated energy savings. If you get an energy efficient mortgage through Fannie Mae, your home’s value will be adjusted to reflect the value of the energy efficient measures.
Two
Federal Housing Authority (FHA) energy efficient mortgages are available for manufactured and site-built homes through an FHA-approved lending institution. You must meet the income requirements for FHA Section 203(b) to qualify for this type of mortgage. Your loan may not be greater than the savings projected for the energy efficiency improvements made, and the loan may be insured for up to 5 percent of your home’s appraised value. This mortgage may be combined with other types of FHA mortgages.
read more...Federal Housing Authority (FHA) energy efficient mortgages are available for manufactured and site-built homes through an FHA-approved lending institution. You must meet the income requirements for FHA Section 203(b) to qualify for this type of mortgage. Your loan may not be greater than the savings projected for the energy efficiency improvements made, and the loan may be insured for up to 5 percent of your home’s appraised value. This mortgage may be combined with other types of FHA mortgages.
Federal Programs
Energy
Efficient and Renewable Energy Mortgages
Your home may qualify if:
Limits on FHA mortgages vary depending on where you live and whether there is more one unit in the residence, and regular FHA loan limits do not apply to an energy efficient mortgage.
Energy Star® manufactured homes are also eligible for an FHA energy efficient
mortgage. For more information, visit the
Manufactured Housing Research Alliance.
• It is
owner-occupied;
• It is a new
home;
• It an existing
home; or
• It has up to
two units
Limits on FHA mortgages vary depending on where you live and whether there is more one unit in the residence, and regular FHA loan limits do not apply to an energy efficient mortgage.
• To apply,
visit your local Department of Housing and Urban Development (HUD) Field Office
through an FHA-approved lending institution, or
apply online.
• Click here for
more information from FHA.
• For more
information visit the
HUD website or call the Office of Single Family Housing at (800)
569-4287
The federal government insures an FHA or VA mortgage, and lenders are secured against default.
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Federal Programs
Energy
Efficient and Renewable Energy Mortgages
Three
Department of Veterans Affairs (VA) energy efficient mortgages are available to veterans, reservists, and other qualified military personnel who purchase an existing home or refinance. Energy improvements are capped at $3,000 to $6,000, or more at the VA’s discretion. Note that you may not include the cost of your own labor in the total amount. If you are interested in this loan, you should obtain a certificate of eligibility from a local lending office and submit it to a private lender approved by the VA.
The federal government insures an FHA or VA mortgage, and lenders are secured against default.
Department of Veterans Affairs (VA) energy efficient mortgages are available to veterans, reservists, and other qualified military personnel who purchase an existing home or refinance. Energy improvements are capped at $3,000 to $6,000, or more at the VA’s discretion. Note that you may not include the cost of your own labor in the total amount. If you are interested in this loan, you should obtain a certificate of eligibility from a local lending office and submit it to a private lender approved by the VA.
• For more
information, call the VA at (800) 827-1000 or visit the
VA website.
The federal government insures an FHA or VA mortgage, and lenders are secured against default.
For more information on these programs:
Public Information, Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
Ph: (800) 829-1040
http://www.irs.gov
Public Information, Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
Ph: (800) 829-1040
http://www.irs.gov
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Federal Programs
