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Federal Tax credits c o n t i n u ed BUSINESS ENERGY INVESTMENT TAX CREDIT (ITC) This business tax credit covers up to 30% of expenditures for eligible solar energy and fuel cell equipment, with no maximum credit limit. There is a $4,000 credit limit on small-scale wind turbines installed after October 3, 2008. Geothermal systems, micro turbines, and combined heat and power systems can qualify for a credit equal to 10% of expenditures, with no maximum credit limit.
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Each technology must meet specific requirements to be eligible for the credit. There are special restrictions on fuel cells, small wind turbines, geothermal systems, and combined heat and power systems placed in service before October 3, 2008 so be sure to check the most updated details from the IRS at: irs.gov.
To claim this credit See pages
Use IRS form 3468. Download at Navigate3.notlong.com. 44-68 for more information on renewable energy systems.
ENERGY EFFICIENT COMMERCIAL BUILDINGS TAX DEDUCTION This tax deduction is available to owners of new or existing buildings who install new energy efficient interior lighting, building envelope improvements, heating or cooling, ventilation, or hot water systems that reduce the building’s total energy costs. The tax deduction is up to $1.80 per square foot. In some cases, non-owner tenants may also be eligible for the deduction if they make construction expenditures. Any improvements made must reduce a building’s energy costs by 50% or more in comparison to the minimum American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) standards. For more information go to: ashrae.org/. Deductions are taken in the year the construction is completed.
See pages
28-43 for some examples of qualifying improvements.
ENERGY EFFICIENT NEW HOMES TAX CREDIT for Home Builders This tax credit is available to commercial home builders for up to $2,000 for each qualified home constructed and certified to reduce heating and cooling energy consumption by 50% relative to the International Energy Conservation Code (IECC) standard (available at: energycodes.gov/) and meet minimum efficiency standards established by the Department of Energy (available at: www1.eere.energy. gov/buildings/). To qualify for this tax credit, 20% of the increased energy efficiency must result from building envelope components. Manufactured homes that meet the same requirements and conform to Federal Manufactured Home Construction and Safety Standards are also eligible for a $2,000 credit. A lower credit of $1,000 is available to builders of manufactured homes if the homes conform to Federal Manufactured Home Construction and Safety Standards, reduce energy consumption by 30% relative to the IECC standard, and have at least one-third of the reductions resulting from building envelope component improvements. Alternatively, manufactured homes that meet Energy STAR® Labeled Home Requirements will also qualify for this credit.
To claim this credit See pages
Use IRS form 8908. Download at Navigate129.notlong.com. 28-43 for more information on energy efficiency in the home.