The Tax Incentives Assistance Project
Update as of 1/2/13:
Several tax incentives were extended and changed through the American Taxpayer Relief Act of 2012, also known as the “fiscal cliff bill,” which passed Tuesday, Jan. 1, 2013. The residential tax incentives for existing homes, including purchases made in 2012, were extended through 2013. These incentives include the following measures:
- Windows, insulation, air sealing homes and duct sealing;
- Air conditioners, heat pumps, furnaces and water heaters.
There were also two incentives that were both extend and changed. The new homes credit provides an incentive to builders for new homes that reduce energy use relative to the IECC-2006 building code by at least 50%. This is a change from prior law that used the IECC-2003 as a base. The appliance credit provides an incentive to manufacturers for increased production of very-efficient refrigerators, clothes washers and dishwashers. These credits had several efficiency tiers in 2011; for 2012-2013, the higher tiers remain but the lowest (least efficient) tiers for clothes washers and dishwashers ended.
These other five incentives remain in place and unchanged from the prior law:
- New and retrofitted commercial buildings that use half the energy of a building built to model codes, scheduled to extend until 12/31/13
- Plug-in electric drive vehicles scheduled to extend until 12/31/16
- Combined heat and power systems scheduled to extend until 12/31/16
- On-site renewable energy systems including ground-source heat pumps, scheduled to extend until 12/31/16
- Fuel cells and microturbines scheduled to extend until 12/31/16
Also, Congress has begun to consider what to do with these tax credits as part of tax reform. No decisions are likely until the end of the year, but at a recent Senate Finance Committee hearing a variety of proposals were discussed.
We wanted to make this update to the homepage now and will continue to update individual topic pages in the upcoming week.
- Residential Energy Efficient Property: Form 5695
- New Homes: Form 8908
- Vehicle Incentives: Form 8910
- Commercial Solar Incentives: Form 3468 (Investment Credit)
Note: The links above go to the IRS web site. TIAP makes every effort to keep these links up to date. IRS often does not publish new versions of forms until the beginning of the following tax year.
Some additional information on tax incentives can be found HERE!
Overview of Federal Energy Efficiency Tax Incentives passed as part of the American Recovery and Reinvestment Tax Act of 2009
*Updated matrix of energy efficiency incentives
What do I have to do to qualify for the incentives?
Follow the guidance issued by IRS – a link is provided below. For a taxpayer, they will need to know the square footage of the building (the IRS guidance explains how to calculate this), when the building was placed in service, and have a certification from a qualified individual stating which targets have been met (50% savings for three systems or 16 2/3% savings for one system). There are no special forms to apply for this deduction, click here for details.
Where can I learn more about qualifying technologies and designs?
- U.S. Department of Energy:
- National Electrical Manufacturers Association Guidance on Certification Letters
- For design advice concerning how to meet the whole building savings goals:
- For information on qualifying lighting systems:
- For additional information on the commercial building tax deductions: