January 2010, Compiled by Morgan Lashley, N.C. Association of Electric Cooperatives

• Introduction: Federal and state energy-related tax incentives
• A Few Guidelines
• 20010 Summary of Energy-efficiency Tax Credits (both federal and NC)
• Download the article as a

2010 Summary of Energy-efficiency Tax Credits (both federal and NC)

Exterior windows & doors, skylights

Requirements:

• 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 exterior window over which it is installed.
• Must meet International Energy Conservation Code (IECC).
• 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.

Metal roofs, asphalt roofs

Requirements: Energy Star qualified metal & asphalt.

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 meet IECC.

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: Not all Energy Star models qualify.

Geothermal heat pump

Requirements: All Energy Star geothermal heat pumps qualify.

Incentive: Federal tax credit equal to 30% of cost. NC credit equal to 35% of cost up to $8,400. 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 equal to 35% of cost up to $1,400 per dwelling. For domestic water or pool and up to $3,500 for combined active space and hot water.

Fine print:

• Place in service by Dec. 31, 2016. Federal credit does not apply to swimming pools or hot tubs heaters. NC credit allows pools.
• For NC 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: Federal 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. NC credit equal to 35% of cost up to $10,500.

Fine print: Must be new to qualify for NC credit. Place in service by Dec. 31, 2016.

Biomass stoves

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

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

Small wind energy systems

Requirements: New systems only with capacity of 100 kw or less.

Incentive: Federal tax credit equal to 30% of cost. Not subject to $1,500 cap. NC credit equal to 35% of cost up to $10,500.

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

Fuel cells

Requirements: Efficiency of at least 30%, capacity at least .5 kw.

Incentive: Federal tax credit equal to 30% of cost up to $500 per .5 kw of capacity.