UPDATED SUMMARY Federal Incentives for Energy Efficiency Improvements begin in calendar year 2006 & "put into service" during 2007 will be rewarded on a tax credit basis (more info below). Eligible items are generally of a larger scale. Up to date list can be found via the links below. Quick lists of eligible items, 2007 Check here to quickly determine whether or not your energy efficient or fuel-efficient transportation investments qualify for 2007 tax credits. A quick breakdown: I. Residential Energy Efficiency Tax Credits Tax credits are available for items "put into service" (installed) before the end of 2007, "which are specifically and primarily designed to reduce heat gain" or increase energy efficiency of said building. Eligible items include: A. Clean Energy Installations Solar electric property (PV) Fuel cell property B. Water Heating Upgrades Solar water heating property An electric heat pump water heater that yields an energy factor of at least 2 C. Heating & Cooling Upgrades Pigmented metal roof Exterior windows and skylights (and/or Energy Star certified) Insulated exterior doors & storm doors (and/or Energy Star certified) Any insulation material or system (including any vapor retarder or seal to limit infiltration) that is specifically and primarily designed to reduce the heat loss or gain of a home when installed ... An electric heat pump that has a heating seasonal performance factor (HSPF) of at least 9, a seasonal energy efficiency rating (SEER) of at least 15, and an energy efficiency rating (EER) of at least 13 A natural gas, propane, or oil furnace or hot water boiler that achieves an annual fuel utilization efficiency rate of at least 95 A closed loop geothermal heat pump that has an EER of at least 14.1 and a heating coefficient of performance (COP) of at least 3.3 An open loop geothermal heat pump that has an EER of at least 16.2 and a heating COP of at least 3.6 A direct expansion geothermal heat pump that has an EER of at least 15 and a heating COP of at least 3.5. A central air conditioner that achieves the highest efficiency tier that has been established by the Consortium of Energy Efficiency and is in effect on January 1, 2006 II. Residential Transportation Efficiency Tax Credits Graduated tax credits are available for the following purchases. (Note, the more recent the purchase, the lower the credit). Eligible vehicles include: Hydrogen fuel cell vehicles Hybrid cars & trucks (incl. heavy trucks) Compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, and any liquid that is at least 85 percent methanol; for vehicles weighing 8,500 pounds or less Rules Tax credits for energy efficiency improvements apply to those purchases which are “placed in service” between January 1, 2006 & December 31, 2007. The IRS defines “placed in service” as the time when products or materials are ready and available for use. In other words, "placed in service" generally refers to the installation, not the purchase, of listed items. 3 Things to Keep In Mind Only items listed by the IRS are eligible for tax credit. Not all Energy Star products are eligible for tax credit. Tax Credit Incentives are available beginning in 2006 & continuing through 2007. More Resources We offer the following expert links in order to provide even more up to date information re: eligible products & updated tax policy (hot link buttons at bottom, this page): http://www.energytaxincentives.org/ http://www.ase.org/content/article/detail/2654 http://www.aceee.org/consumerguide/mostenef.htm#rebate http://www.irs.gov/newsroom/article/0,,id=153397,00.html http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#1 Contact us anytime with questions: customercare@goodcommonsense.net Shop at GoodCommonSense for energy efficient products: "Best prices on the web, GoodCommonSense.net." Highlights of the Energy Policy Act for Individuals Energy Tax Incentives .org Alliance to Save Energy .org American Council for an Energy Efficient Economy Energy Star .gov