Tax Credit summary

There are many tax credits available for builders and homeowners integrating energy efficiency and renewable energy into their new and existing homes. A good web link for the list of items available is: http://www.resnet.us/taxcredits/

Renewable Energy Systems: Solar water heating and solar electric systems are eligible for a 35% NC State tax credit and a 30% federal tax credit on the net costs remaining. This tax credit generally works out to approximately 50% of the total installed costs and paybacks are usually in the 5 to 9 year range. Dsire database has complete listing and details at: http://www.dsireusa.org/.

Energy efficient appliances are eligible for a tax credit. They are contained in Section 1334 of the 2005 energy bill.

You can download the energy bill by clicking on
http://energy.senate.gov/public/_files/ConferenceReport0.pdf.
The appliance section is on page 1363. A tax credit is available for all homeowners interested in improving their home's energy efficiency. The law provides a 10% credit for buying qualified energy efficiency improvements. The maximum credit for all taxable years is $500 – no more than $200 of the credit can be attributable to expenses for windows. Builders are eligible for a $2,000 tax credit for new construction for homes that meet a 50% reduction in heating and cooling loads.

Our federal and state governments support sustainable energy with these targeted tax credits, and we encourage everyone to consider what role they can take to maximize our energy resources.