Energy-Related Tax Credits
Compiled by Dan Kulpinski
(Jump to Maryland State Grants and Programs | Montgomery County Tax Credits)
Federal Tax Credits for Energy Efficiency for Consumers include:
- Tax credits are available at 10% of the cost, up to $500, in 2011 (for existing homes only) for:
- Windows and Doors
- Insulation
- Roofs (Metal and Asphalt)
- HVAC
- Water Heaters (non-solar)
- Biomass Stoves
- Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for:
- Geothermal Heat Pumps
- Solar Panels
- Solar Water Heaters
- Small Wind Energy Systems
- Fuel Cells
Notes:
- $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 small wind energy systems which are not subject to this cap, and are in effect through 2016
- must have a Manufacturer Certification Statement to qualify
- for record keeping, save your receipts and the Manufacturer Certification Statement
- 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
-- FOR COMPLETE INFO ON FEDERAL TAX CREDITS FOR ENERGY EFFICIENCY, SEE energystar.gov/taxcredits
Maryland State Energy Grants and Programs
Montgomery County Tax Credits
The county offers tax credits for Renewable Energy Devices and Energy-Conservation Devices.
1. Renewable Energy Devices
Property Tax Credits for Solar Energy Devices or Geothermal Energy Devices
- Space Heating and Electricity Generation: (Solar and Geothermal): $5,000 max
- Water Heating (Solar and Geothermal): $1,500 max
-- MORE INFO: County Department of Environmental Protection's Energy Incentives page
-- APPLICATION: County Department of Finance
2. Energy-Conservation Devices
Property Tax Credits up to $250 are available for the installation of eligible energy-conservation devices.
“Energy Conservation Device” means a device that:
- (1) Reduces the demands for conventional fuels, or increases the efficiency of these fuels, including:
- A. caulking and weatherstripping doors and windows;
- B. furnace efficiency modifications;
- C. a programmable thermostat;
- D. ceiling, attic, wall, or floor insulation;
- E. water heater insulation;
- F. storm windows or doors, multiglazed windows or doors, and heat-absorbed or heat-reflective glazed window or door materials;
- G. any device which controls demand of appliances and aids load management; and
- H. any other conservation device, renewable energy technology, and specific home improvement that is determined necessary to assure that energy conservation measures are effective
- (2) Meets safety and performance standards set by a nationally recognized testing laboratory for that kind of device.
Note: Energy Conservation Device does not include a standard household appliance.
-- MORE INFO: County Department of Environmental Protection's Energy Incentives page
-- APPLICATION: County Department of Finance