Austin REAL ESTATE

Product Category

Product Type

Tax Credit Specification

Tax Credit

Notes

Windows & Doors

Exterior Windows and Skylights

U factor <= 0.30

SHGC <= 0.30

30 percent of cost, up to $1,500²

Not all ENERGY STAR labeled windows and skylights qualify for tax credit.

Storm Windows

Meets IECC¹ in combination with the exterior window over which it is installed, for the applicable climate zone

30 percent of cost, up to $1,500²

Manufacturer Certification Statement³ will list classes of exterior window (single pane, clear glass, double pane, low-E coating, etc.)⁴ that a product may be combined with to be eligible in specific climate zones.

Exterior Doors

U factor <= 0.30

SHGC <= 0.30

30 percent of cost, up to $1,500²

Not all ENERGY STAR doors will qualify.

Storm Doors

In combination with a wood door assigned a default U-factor by the IECC¹, and does not exceed the default U-factor requirement assigned to such combination by the IECC

30 percent of cost, up to $1,500²

Roofing

Metal Roofs,

Asphalt Roofs

ENERGY STAR qualified

30 percent of cost, up to $1,500²

All ENERGY STAR metal and asphalt roofs qualify for the tax credit.

Must be expected to last five years OR have a two-year warranty.

Insulation

Insulation

Meets 2009 IECC & Amendments

30 percent of cost, up to $1,500²

For insulation to qualify, its primary purpose must be to insulate. (example: vapor retarders are covered, insulated siding does not qualify).

Must be expected to last five years OR have a two-year warranty

HVAC

Central A/C

Split Systems:

EER >=13

SEER >= 16

Package systems:

EER >= 12

SEER >= 14

30 percent of cost, up to $1,500²

For a list of qualified products, go to the Consortium for Energy Efficiency product directory, click on Air Conditioners, then in the “CEE Tier” enter “Residential Advanced Tier 3” for CAC Split Systems, and "Residential Tier 2" for CAC Package Systems and ASHPs.

Note — not all ENERGY STAR products will qualify for the tax credit.

Air Source Heat Pumps

Split Systems:

HSPF >= 8.5

EER >= 12.5

SEER >= 15

Package systems:

HSPF >= 8

EER >= 12

SEER >= 14

30 percent of cost, up to $1,500²

Natural Gas or Propane Furnace

AFUE >= 95

30 percent of cost, up to $1,500²

For a list of qualifying products go to the Gas Appliance Manufacturing Association 

Not all ENERGY STAR products will qualify for the tax credit.

Oil Furnace

AFUE >= 90

30 percent of cost, up to $1,500²

Gas, Propane, or Oil Hot Water Boiler

AFUE >= 90

30 percent of cost, up to $1,500²

Advanced Main Air Circulating Fan

No more than two percent of furnace total energy use

30 percent of cost, up to $1,500²

Water Heaters

Gas, Oil, Propane Water Heater

Energy Factor >= 0.82

or a thermal efficiency of at least 90 percent.

30 percent of cost, up to $1,500²

Not all ENERGY STAR gas storage and gas condensing water heaters will qualify for the tax credit. All ENERGY STAR gas tankless models will qualify.

All ENERGY STAR gas tankless water heaters will qualify.

For a partial list of qualifying products go to the Air Conditioning, Heating, and refrigeration Institute (AHRI) 

Electric Heat Pump Water Heater

Same criteria as ENERGY STAR: Energy Factor >= 2.0

30 percent of cost, up to $1,500²

All ENERGY STAR electric heat pump water heaters qualify for the tax credit.

Biomass Stove

Biomass Stove

Stove which burns biomass fuel⁵ to heat a home or heat water.

Thermal efficiency rating of at least 75 percent as measured using a lower heating value.

30 percent of cost, up to $1,500²

Geo-Thermal Heat Pump

Geo-Thermal Heat Pump

Same criteria as ENERGY STAR:

Closed Loop:

EER >= 14.1

COP >= 3.3

Open Loop:

EER >= 16.2

COP >= 3.6

Direct Expansion:

EER >= 15

COP >= 3.5

30 percent of the cost

All ENERGY STAR geo-thermal heat pumps qualify for the tax credit.

Use IRS Form 5695 

Must be “placed into service” before Dec. 31, 2016.

Solar Energy Systems

Solar Water Heating

At least half of the energy generated by the “qualifying property” must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household.

The credit is not available for expenses for swimming pools or hot tubs.

The water must be used in the dwelling.

The system must be certified by the Solar Rating and Certification Corporation (SRCC).

30 percent of cost

All ENERGY STAR solar water heaters qualify for the tax credit.

Use IRS Form 5695 

Must be placed in service before December 31, 2016.

Photovoltaic Systems

Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.

30 percent of cost

Use IRS Form 5695 

Must be placed in service before Dec. 31, 2016.

Small Wind Energy Systems

Residential Small Wind Energy Systems

30 percent of cost

Use IRS Form 5695 

Must be placed in service before Dec. 31, 2016.

Fuel Cells

Residential Fuel Cell and microturbine system

Efficiency of at least 30 percent and must have a capacity of at least 0.5 kW.

30 percent of the cost, up to $1500 per .5 kW of power capacity

Use IRS Form 5695 

Must be placed in service before Dec. 31, 2016.