Tax bill includes energy efficient tax credits Fort Lauderdale residents need
The tax legislation President Barack Obama recently signed modifies and extends three energy efficiency tax incentives, as part of a much larger tax package. These tax incentives will continue to help raise the market share of efficient appliances, HVAC and insulation products, and new homes.
Fort Lauderdale, Florida more than maybe other parts of the country are looking for the continuation of these tax credits to help bolster our economy both through consumer spending, especially this time of year, as well as a possible means to stabilize property values.
The legislation which extends the new homes tax credit to cover 2010 and 2011 – this $2000 credit goes to the home builders and is for homes that use no more than half the energy of homes that just meet the 2003 national model energy code. The credit expired at the end of 2009 but the new bill extends this to cover new homes that are built in 2010 and 2011.
The bill also extends and updates manufacturer appliance tax credits for 2011 – the credit, which goes to manufacturers directly, is extended for one year, and the following criteria now apply:
- Dishwashers –
- $25 – models using no more than 307 kilowatt hours/year and 5.0 gallons of water/cycle (this is the ENERGY STAR level effective July 1, 2011)
- $50 – models using no more than 295 kilowatt hours/year and 4.25 gallons of water/cycle
- $75 – models using no more than 280 kWh kilowatt hours/year and 4 gallons of water/cycle
- Clothes Washers –
- $175 – top-loading models that meet/exceed 2.2 MEF, and does not exceed 4.5 WCF
- $225 – top-loading models that meet/exceed 2.4 MEF, and does not exceed 4.2 WCF, or front-loading models that meet/exceed 2.8 MEF and do not exceed a 3.5 WCF
- Refrigerators –
- $150 – models that use 30% less energy relative to federal standard
- $200 – models that use 35% less energy relative to federal standard
The legislation extends the 25C heating and cooling equipment and building envelope tax incentives for another year but at reduced levels. The new bill extends eligibility to the end of 2011, but reduces the incentive to the original 10% up to $500. Included are provisions which:
- limit window incentives to $200;
- limit oil and gas furnace and boiler incentives to $150, plus an additional $50 for efficient furnace fans;
- limit water heater and wood heating system incentives to $300;
- loosen the qualification for window incentives (ENERGY STAR windows now qualify);
- and tighten the specifications for oil furnaces and boilers and gas boilers to 95% efficiency, up from the 90% efficiency in current law.
While it is positive that these tax credits were extended, some were reduced and clearly some should be increased. $200 for windows is not much of an incentive considering how much an energy efficient and where we live in Fort Lauderdale, Florida, a hurricane impact window would cost.
While Congress extended most of the expiring federal energy efficiency tax incentives, they did not extend the incentive for hybrid trucks and buses.
These are last year’s IRS forms. Please be sure to use the forms for 2010 or consult your tax advisor for the most up-to-date forms and information.
- Residential Energy Efficient Property: Form 5695
- New Homes: Form 8908
- Vehicle Incentives: Form 8910
- Commercial Solar Incentives: Form 3468 (Investment Credit)
Need a refresher in what was eligible this year for tax credits? Visit the Department of Energy, Consumer Energy Tax Credits.
In Broward County we also have a $100 toilet rebate program available as well.
As an architectural consultant, LEED AP, LEED certification reviewer, real estate broker and AIA associate, Valerie J. Amor is dynamically engaged in sustainability and issues regarding the built environment. Actively participating in several local, county and national organizations and committees focused on sustainability issues, she is also owner/principal of Drawing Conclusions and founder/president of Green Collar Connection, companies engaged in sustainable design, real estate development, green job training and research. Knowledgeable and well connected she brings you timely and thoughtful articles. Reach her at .
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