The American Recovery and Reinvestment Act of 2009 includes an extension and improvement to the tax incentives related to energy efficient improvements made to existing homes. Homeowners who make qualified energy efficient improvements, including a cool metal roof, to existing structures can now qualify for tax credits in 2009 and 2010. That tax credit to a homeowner has been raised from 10% of the cost of the improvement material or item to 30% of the installed cost (materials only) over the years 2009 and 2010 combined. The maximum credit has also been raised from $500 to $1500 for the two years combined.
The higher and extended tax credits are now available to homeowners who place an ENERGY STAR labeled prepainted metal roof into service between January 1, 2009 and December 31, 2010. The home must be the taxpayer’s principle residence. A homeowner needs to save their receipts and the metal roofing company’s Manufacturer Certification Statement that accompanied the roof. That paperwork does not need to be submitted to the IRS, but it should be kept on file just in case the IRS has questions later. Homeowners who qualify should use the 2009 version of IRS Tax Form 5695 when filing their tax returns.
In new residential construction, “eligible contractors” can qualify for a $2,000 tax credit for building a new energy efficient home. The new home must 50% of the heating/cooling energy compared to a home built to the requirements of the 2004 International Energy Conservation Code (IECC), and supplements.. At least 20% of the energy savings must come from building envelope improvements. For builders of manufactured homes, a $1,000 tax credit is available on those homes that achieve 30% heating/cooling energy savings over the 2004 IECC and supplements. In those cases, at least 1/3 of the savings must come from building envelope improvements. The tax credits to builders of new homes apply to those structures whose construction is substantially completed after August 8, 2005 and are then acquired from the eligible contractor for use as a residence from January 1, 2006 through December 31, 2009.
In new commercial construction tax incentives are available to building owners for energy efficient buildings. The American Recovery and Reinvestment Act did not change much of the provisions in previous bills. A tax deduction of up to $1.80/sq.ft. is available to owners or designers of new or existing commercial buildings that save energy. The deduction applies to a building that saves at least 50% of the heating/cooling energy when compared to a building that meets ASHRAE 90.1-2001 standards. In addition, partial deductions of up to $0.60/sq.ft. can be taken for design or systems that affect either a) the building envelope, b) lighting, or c) heating and cooling systems. The commercial building tax deductions are available for structures or energy efficient systems placed in service from January 1, 2006 through December 31, 2013