REWARDING Energy Efficiency
When you make an energy-efficient purchase for your home or business from 2009-2010, you may qualify for a federal tax credit. In some instances, you can collect both the tax credit and Alliant Energy cash reward, if applicable.
The American Recovery and Reinvestment Act of 2009 (ARRA), also known as an economic stimulus bill, expanded the tax benefits of the Energy Policy Act of 2005. Many of the incentives were increased in value and the deadline for filing was extended.
Home
Homeowners can claim a maximum of $1500 in tax credits, called a whole-house limit, on eligible energy-efficient purchases installed throughout the home. The ARRA increased that from a previous maximum of $500. In most cases, the homeowner can claim 30% of the total cost of the improvement (including labor) until they reach the whole-house limit. The new tax act applies to improvements placed into service from January 1, 2009 – December 31, 2010. Some residential renewable energy projects also qualify for tax credits.
Energy-Efficiency and Renewable Energy Tax Credits Sheet [PDF]
2009 Cash Rewards for Iowa Alliant Energy Residential Customers
2009 Cash Rewards for Minnesota Alliant Energy Residential Customers
2009 Cash Rewards for Wisconsin Alliant Energy Residential Customers
Commercial
The energy-efficient commercial buildings measure provides a tax deduction of up to $1.80 per square foot for new or renovated buildings that exceed the ASHRAE 90.1-2001 standard by 50 percent. There are deductions for:
- Interior lighting
- HVAC systems
- Hot water heating systems
- Building envelope
A partial deduction of $.60 per square foot can be taken for measures affecting the building envelope, lighting or heating and cooling systems. The credits were extended through December 31, 2013.
There is also a new tax credit for Combined Heat and Power (CHP). Systems smaller than 50 MW with a minimum efficiency of 60% (20% of energy produced must be electric energy, and 20% must be thermal energy) can qualify for a 10% investment tax credit on the first 15 MW.
Energy-Efficiency and Renewable Energy Tax Credits Sheet [PDF]
2009 Cash Rewards for Iowa Alliant Energy Customers
Renewable energy
Adding a renewable energy system has many benefits for homeowners, small businesses, schools, and farms. Many renewable systems, such as energy-efficient fuel cells, solar panels, solar water heaters, small wind systems, and geothermal systems, also qualify for tax credits.
Credits vary for commercial customers, but generally residential customers can qualify for a tax credit of 30% of the total cost of the system. The 2009 ARRA act also removed the maximum on the tax credit, with the exception of fuel cells that are capped at $1500 per .5 kW of power capacity. The changes apply systems installed by December 31, 2016.
Geothermal systems for residential and commercial customers also qualify for Cash Rewards from Alliant Energy.
Energy-Efficiency and Renewable Energy Tax Credits Sheet [PDF]
2009 Cash Rewards for Iowa Alliant Energy Customers [PDF]
2009 Cash Rewards for Minnesota Alliant Energy Customers [PDF]
2009 Renewable Energy Incentives for Wisconsin Alliant Energy Customers
The information presented is a summary of the energy efficiency building provisions set forth in the American Recovery and Reinvestment Act of 2009 and the 2008 extension of the Energy Policy Act of 2005. Details can and may change at any point, per governmental prerogative. We encourage you to speak with your tax advisor regarding these tax credits and any related qualifications and/or requirements. Equipment must meet certain energy-efficiency criteria to qualify for the credit. Receipts showing proof of purchase and a copy of the manufacturer’s certification will be required when filing your tax return. For additional information on tax credits, refer to energytaxincentives.org. The White House has also created a website at recovery.gov that tracks developments, guidance for receiving funds and destination of appropriated money.
Additional links:
Energy-Efficiency and Renewable Energy Tax Credits Sheet [PDF]
Energy Star – Federal Tax Credits for Energy Efficiency
DSIRE – Federal Incentives for Renewables and Efficiency
TIAP – Tax Incentives Assistance Project
ASE – Energy Efficiency Tax Credits
DOE – Consumer Energy Tax Incentives
ACEEE – Legislative Update on Federal Energy Efficiency Tax Incentives