Federal tax credits available by promoting energy efficiency are:
The contractors who are eligible for the credit submit the forms by filing the amount of tax imposed on their incomes and the the amount of federal tax credit they availed.
The guidance regarding the eligibility for federal tax credits is provided in the IRS notices. Following information regarding federal tax credit is provided in the Act regarding Energy Projects. This publication is updated by the IRS as per required.
- For building energy efficient homes home builders will be entitled for a $2000 tax credit, if such houses saves 50% heating as well as cooling energy.
- 1/5 energy must had to be saved by improving the building coverings or insulation.
- This tax credit will also be valid after confirming to the federal home constructors for the energy saving houses they constructed.
- For saving 30% energy on heating as well as on cooling $1000 tax credit will be allowed only when 1/3 of energy saving is made through building covering or insulation improvements and also the houses are constructed in accordance with the requirement of the energy saving program.
- If the other requirement of the program are not fulfilled the person is not entitled for the tax credit even if he is eligible due to constructing a energy efficient house.
- These federal tax credits for business is only available if new houses are constructed in united states and are available for use from 1 Jan 2006 till 31 Dec 2008.
The other products which reduce the energy consumption or the products which are energy efficient such as refrigerator, dishwashers, car washers and other home appliances will be allowed tax credit only if they increase the production of these products as well as they reduce the market price of these products