2009 Chesapeake Tax Credits
2009 Tax Credit
If you're planning a window or door replacement project, then now's the time. You can receive a tax credit for 30% of the cost of qualified energy-efficient windows and doors, up to $1,500.

To qualify for the new Tax Credit, you have to be a smart shopper and buy the most energy-efficient windows. Energy Star certification, the old standard, doesn't cut it anymore. The new standard will help our country become energy independent. Plus, better windows save you money on energy bills and keep you comfortable all year round.

2009 Tax Credits - View Energy Start guidelines here.
Tax credits are now available for home improvements:

• must be "placed in service" from January 1, 2009 through December 31, 2010
• must be for taxpayer's principal residence
• $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and windmills which are not subject to this cap, and are in effect through 2016
• must have a Manufacturer Certification Statement3 to qualify
• for record keeping, save your receipts and the Manufacturer Certification Statement3
• improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010
• If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.

Home Shell: Insulation, Windows, Sealing

What is the tax credit for existing homes?

Please note that these incentives have changed as of February 17, 2009. If you installed home envelope components between January 1 and February 16, 2009, click here.

Existing homes are eligible for a series of efficiency measures that pertain to the home envelope, worth 30% of the installed cost (materials only, labor is not included in the credit basis). There is a $1,500 cap on the credit per home, including the amount received for heating, cooling, and water heating equipment.

These credits are available for systems placed in service from January 1, 2009, through December 31, 2010.

I don't think I qualify for this incentive, or I installed this equipment during 2008 - where can I find information on state-level incentives?

What is eligible for the federal tax credits?

Eligible measures are:

• Added insulation to walls, ceilings, or other part of the building envelope that meets the 2009 IECC (& supplements) specifications.
• Replacement windows and skylights, and exterior doors which are equial to or below a 0.30 U factor and a Solar Heat Gain Coefficient (SHGC) of 0.30. Storm windows that meet the IECC in combination with their paired external window are eligible (taking into account the applicable climate zone). Storm doors paired with U-factor rated wood doors are eligible provided they do not exceed the default U-factor requirement for the combination. See the 2009 IECC for details.
• Window films certified by the manufacturer that the product meets the requirements of a "qualifying insulation system."
• Sealing cracks in the building shell and ducts to reduce infiltration and heat loss - these should be sealed so as to be consistent with the 2009 IECC.
• Pigmented metal roofs, or an asphalt roof with cooling granules must meet Energy Star requirements.

Manufacturers and retailers should be able to help you tell whether a specific product qualifies.

What do I need to do to qualify for the incentives?
Under the IRS rules, manufacturers need to certify that specific measures are eligible. Homeowners should obtain a copy of this certification from the manufacturer, installer or retailer when buying these products. Certifications need not be submitted to the IRS, but should be kept on file in case the IRS has questions. Homeowners should also make notes on when each eligible measure is installed- only measures "placed in service" in 2009 or 2010 are eligible.

To apply for the incentive, use IRS form 5695. Please note that this version of the form is for 2008, and so does not include line items for the incentives discussed on this page. There will be a section for these incentives on the 2009 iteration of the form which will likely be available in early 2010.

Click here to access IRS guidance on qualifying energy-efficient property.

Where can I find out more about qualifying products?

• Insulation:
  • U.S. Department of Energy Energy Savers
  • North American Insulation Manufacturers Association (NAIMA)
• Windows:
  • U.S. Department of Energy Energy Savers
  • American Council for an Energy-Efficient Economy
  • EfficientWindows.org
  • National Fenestration Rating Council
• Duct Sealing:
  • Energy Star
• Air Infiltration Reduction:
  • Energy Star
  • U.S. Department of Energy Energy Savers
• Home Energy Ratings and Related Services:
  • Residential Energy Services Network (RESNET)
• Information on Qualifying Roofs:
  • Energy Star