Fuel Cells
What are the tax incentives for fuel cells?
These incentives are tax credits for two advanced distributed generation technologies: qualifying fuel cell and microturbine systems. Fuel cells generate electricity through a chemical process. They are somewhat similar to batteries, except fuel must be fed continuously to them. Microturbines are small power generation systems using a gas turbine engine, based on related turbines used in transportation. The credits are available for systems “placed in service”prior to December 31, 2016.
Who is eligible for the tax incentives?
Individuals are only eligible for the fuel cell tax incentive, while businesses can also apply for an incentive for microturbines.
What are the incentives and how do they work?
- For fuel cells:
o Credits are for 30% of the cost, up to $1000 per kW of power that can be produced.
o To qualify systems must have an efficiency of at least 30% and must have a capacity of at least 0.5 kW.
This incentive is permissible against the Alternative Minimum Tax (AMT).
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Home Heating & Cooling Equipment
What are the incentives for home heating & cooling equipment?
Purchasers of highly efficient heating, cooling, and water heating equipment can take tax credits of up to $300 for purchasing qualifying equipment, as detailed below. These credits are available for systems placed in service from January 1, 2009, through December 31, 2009. There is a $500 cap on the credit per home, including the amount received for insulation, windows, air and duct sealing as described in the previous section.
What types of equipment qualify and for how much?
- High-efficiency gas, oil, and propane furnaces and boilers: $150
- High-efficiency central air conditioning units, including air-source heat pumps: $300
- NEW – Ground-source or geothermal heat pumps
- NEW – Biomass Stoves – $300
- High-efficiency fans for heating and cooling systems: $50
- High-efficiency water heaters, including heat pump water heaters: $300
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Home Shell:
Insulation, Windows, Sealing
What is the tax credit for existing homes?
Existing homes are eligible for a series of efficiency measures. For some measures, such as insulation, a taxpayer can take a credit of up to 10% of the cost. There is a $500 cap on the credit per home, including the amount received for heating and cooling equipment, as described in the next section. Lower caps are set on credits for some individual measures.
These credits are available for buildings or systems placed in service from January 1, 2009, through December 31, 2009.
What is eligible for the federal tax credits?
Eligible measures are:
- Added insulation to walls, ceilings, or other part of the building envelope.
- Replacement windows and skylights: credit capped at $200.
- Window Films
- External doors
- Sealing cracks in the building shell and ducts to reduce infiltration and heat loss.
- Pigmented metal roofs, or an asphalt roof with appropriate cooling granules.
Only materials (insulation, windows, sealants, etc.) are eligible and not the labor to install these materials.
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