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The Kitchen Table

Federal tax credits for energy-efficient improvements

14 years ago

Some of you might want to check this site to see if you qualify for tax credits. I'm having two windows replaced soon, so I'll be able to claim their purchase price.

I'm also getting a new hot water heater, but there's no rush on that one.

I found it interesting that regular electric hot water heaters don't quality. Does this mean propane heaters are less expensive to operate? Probably not.

Here is a link that might be useful: Tax Credits for Energy Star stuff

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Comments (7)

LorifromUtah
14 years ago
We participated in an insulation program sponsored by our gas and electric companies. Because we have central heat and air will will get 100% back of the upfront money. Last year we claimed a new furnace, refrigerator, dishwasher, washer/dryer and water heater for energy efficient deductions.
Our water heater is gas so we got the credit. I wonder why electric heaters do not? It still is energy efficient which is why they offer these credits.

Lori
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lydia1959
14 years ago
We looked into the tax credit when we were putting the extra room on our house (this was before 7/09) and we found that the energy star rated windows would be almost twice as much as the regular double hung windows that we ended up getting.. so no credit for us on that. I see now that the window requirement has changed.. not sure if we still would have qualified or not.
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Any reputable dealer has not "jacked" the price up $1500 or we'd never get the job. It's a bonus to the home owner. I personally want us all to win. The consumer wins with the tax credit, the dealer wins by selling higher end equipment, and the country wins by using less energy. To answer price increases, naturally prices have gone up in the past two years, especially last summer when metal prices, and gas prices were skyrocketing. Adversely, we as dealers had to lower our margins to stay competitive with the "whores" of the hvac world who are hanging by a thread and practically begging for work. Also, increases in minimum SEER rating for air conditioning units raised prices quite a bit, and the new R410a refrigerant (mandatory in all units made after this year) also typically cost a bit more. All in all, units are getting more efficient, companies have tightened their pockets, and consumers have gotten more price driven. The market has changed in a short time, but now is definitely the time to buy as all these factors have created an edge for the consumer. As I always say, make sure you use a reputable company for the installation, and stick with a quality system. There is a lot of junk out there...equipment and installers.
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eths: I agree with you whole-heartedly. The Fed Tax Credit had no bearing on my decision to get a 14 SEER Goodman. $300 - big whoop. I'll cheat more on next year's taxes and make up the difference (I didn't write that). After reading this forum for many weeks and asking a lot of questions (God bless Bob Brown - he was a little off-the-wall but was looking out for homeowners like me), I decided on a 14 SEER Goodman with optional TXV and a good-ole 3-speed (not v-s) motor in the air handler. I went with the 14 because of the Copeland scroll compressor. I went with the 3-speed motor because I wanted a $75 replacement cost and not a $1000 repacement v-s motor like some poor lady from a post a month ago paid (and was told that was a fair price - NFW). Goodman's web site allowed me to download the product specs for the condenser unit which showed the SEER and EER ratings for all of their matched air handlers (all were rated with a TXV and not the flowrater expansion device supplied). After checking the proposed air handler, I found that the supplier was about to mismatch the air handler (13 SEER) to the 14 SEER condensing unit. I got that straightened out before I picked up the air handler. I also took my replacement one step further. I found a dealer in PA, about 30 miles from me, who sells Goodman direct to the public (not an internet dealer) and is listed as an A1 supplier on Goodman's website. I picked up the system myself and paid a pro to install it. The same dealer provides warranty service (which is 10 years, parts only). Several people have contacted me and have followed the same path. One guy had his system shipped from PA all the way to CA, paid a pro to install it, and still saved the same $2k that I saved. Take care.
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OklaMoni
14 years ago
We got all new windows in our house, we moved in to in 2008. We did go for the energy efficient ones, since the others got replaced because of the cold/hot air we could feel by the window.

So far, we are very happy with them. Just waiting for the rebate. :)

Moni
0
pattico_gw
14 years ago
We had to put in a new energy efficient Air conditioning unit this past summer...So we are hoping we'll get tax credit back on that. Keeping my fingers crossed.

patti
0
cynic
14 years ago
It varies of course depending on local gas and electric rates but generally speaking gas water heaters are quite a bit cheaper to operate than electric. There's another issue though. Electric water heaters for safety reasons should be kept at 140Â° while a gas heater can be kept at 120Â° without risking increased Legionella risk. The reason is the flame is on the bottom of the tank where heating elements are higher up in electric heaters. In order to heat all the water in an electric heater, it has to be higher by design. Heat rises through the gas tank though. Hope that's not too confusing.

Now, it should also be pointed out that there's other variables in use. And cost savings is relative. Some people don't care about spending an extra $10-20 a month in the grand scheme of things. But overall, if you have a choice, go with natural gas first, propane second as preferable choices over electric water heaters.
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gemini40
14 years ago
May I add word on this subject. The company I work for installs furnaces and boilers and hot water heaters...well let me tell you..as typical of most programs the government gets involved with the paper work is outrageous.
So for all future customers going through one of these ' energy efficient programs he will tack on an addition 100.00 to 200.00 dollars to compensate for the excruciating detail wanted by the program.Then to top it off the installer doesn't get paid until some government lackey okays the final job.. Not going to happen.
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alisande
Original Author
14 years ago
Really? I thought I could just save the proof that I'd had Energy Star approved windows installed, and take it as a tax deduction. The installation charge isn't deductible, and I paid the installer the day he did it.

The info on water heaters is good to know, Cynic. I'll be getting one in the spring. Our electric rates are going up (possibly way up) in 2010.
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