The Federal Tax Credit for Energy Efficiency – Wood Stoves, Pellet Stoves, Fireplace Inserts expired in 2011. The President chose not too extend this tax credit. Local energy utility companies like PG&E have their own energy efficiency rebates. To find out if rebates or other incentives are available in your area, visit the ENERGY STAR Rebate Finder.

What other rebates are available?

Delta County, Colorado has a rebate. Other areas have change-out programs.

Be sure to place carbon monoxide and smoke detectors near the stoves to ensure safety.

Wood Stoves, Pellet Stoves, Fireplace Inserts Rebates

A chill is in the air and temperatures are dropping fast. Wood stoves, Pellet Stoves, and Fireplace Inserts that heat specific rooms are popular and are aggressively marketed. Everybody want to save money, so here is a tax credit that helps make a new wood stove or pellet stove more affordable.

For 2011, the Federal Tax Credit for energy efficiency drops to 10%, up to a $500 maximum. (2011 Federal Tax Credit information for Biomass Stoves)

• Oil and gas furnace and boiler incentives are capped at $150
• Additional $50 for efficient furnace fans
• Wood heating system, biomass stove incentive capped at $300
• Oil furnaces, boilers, and gas boilers must be 95% efficient. (It was 90% in 2010)
• Existing home and principal residence.   New construction and rentals do not qualify.
• Expires December 31, 2011 – Consult the What other rebates are available? below for other possible rebates.

The 2011 tax credit reverted to  2005-2008 levels. Anyone who previously took advantage of the program can not apply for incentives that exceed $500.  IE If you claimed $500 between 2005 – 2008 on a previous energy efficiency project, or at least $500 tax credit from 2009 – 2010, you are ineligible for the 2011 energy efficiency tax credit.

If you used say $200 of the $500 energy efficiency tax credit from 2005 – 2008, and did not utilize the 2009 – 2010 energy efficiency tax credit, you would still have a $300 credit available.

What are Pellet Stoves?

Pellet stoves burn compressed sawdust and typically hold 24 hours worth of pellets. Look for easy to load and clean openings in Pellet stoves. These stoves are more efficient than wood burning models, but need power to run circulation fans.

In 2009, burning pellets costs about 15% less than oil, and 40% less than electrical heat, but 25% more than natural gas. Prices change yearly though.

The Government has a powerful renewable energy incentive designed to reduce our reliance on foreign oil and increase clean, efficient home heating with wood logs and pellet fuels. The stoves must have a thermal efficiency rating of at least 75% as measured using a lower heating value.  Vendors have labeled which of their products qualify. Regency Fireplace products has a list of products that qualify.

This credit reduces the amount of tax you owe. The credit is a reduction of total income tax at the bottom of your return. This tax credit is a non-refundable tax credit. Consult your tax adviser for details. Use it or lose it!

The US Government’s Energy Information Administration has a Heat Calculator Spreadsheet to help you compare alternative heating source like wood and pellet stoves.

The Federal Tax Credit for Energy Efficiency – Windows, Doors, Skylights expired in 2011. The President chose not too extend this tax credit. Local energy utility companies like PG&E have their own energy efficiency rebates. To find out if rebates or other incentives are available in your area, visit the ENERGY STAR Rebate Finder.

Be sure to read our article: Weatherize your home – Fix Leaky Ducts – Reducing Air Leaks

A reminder that there is a  Federal Tax Credits for Consumer Energy Efficiency on Qualifying Windows, Doors, Storm Windows, Storm Doors, and Skylights. If you have been thinking about replacing these items, you might as well upgrade now and save some money.

For 2011, the Federal Tax Credit for energy efficiency drops to 10%, up to a $500 maximum. (2010 Federal Tax Credit information)

• Windows capped at $200
• Qualification now ENERGY STAR
• Existing home and principal residence.   New construction and rentals do not qualify.
• Expires December 31, 2011 – Consult the What other rebates are available? below for other possible rebates.

Pella even makes doors utilizing eco friendly, green, FSC Certified Rustic Walnut.

Consumer Reports.org has tips on selecting a door.

Storm Doors and Windows must meet International Energy Conservation Code (IECC) guidelines. Look for double glazed windows with an low emissivity (low-e) and a R-value of about two or three.

The Federal Tax Credit for Energy Efficiency – Water Heaters expired in 2011. The President chose not too extend this tax credit. Local energy utility companies like PG&E have their own energy efficiency rebates. To find out if rebates or other incentives are available in your area, visit the ENERGY STAR Rebate Finder.

Be sure to check out our reduce water heater use, water saving tips and ways to save energy.

The 2011 Federal Tax Credit

There is a Federal Energy Efficiency Tax Credit on Qualifying Gas, Oil, Propane Water Heaters as well as Electric Heat Pump Water Heater and Solar Water Heaters. If your water heater is on its last legs, you might as well upgrade now and save some money. Newer water heaters require less energy and time to heat water. Reduce the waiting time between showers and doing laundry.

For 2011, the Federal Tax Credit for energy efficiency drops to 10%, up to a $500 maximum. (2010 Federal Tax Credit information)

• $300 cap for water heater
• Gas, Oil, Propane Water Heaters must have Energy Factor >= 0.82 or a thermal efficiency of at least 90%
• Newer Hybrid water heaters are also available
• Electric Heat Pump Water Heater requirements are the same as ENERGY STAR: Energy Factor >= 2.0.

• Existing home and principal residence.   New construction and rentals do not qualify.
• Expires December 31, 2011 – Consult the What other rebates are available? below for other possible rebates.

Consider an on demand Tankless Water Heater if your situation allows for it.  Most need ready access to a good sized gas pipe and exhaust vent.

Solar Water Heaters are covered if they are EnergyStar certified. The Federal Tax Credit for solar water heaters is 30% of the cost including installation and labor. It expires December 31, 2016.

AO Smith makes the hi tech Vertex 100 water heater that is very efficient, but requires PVC pipe venting not normal metal venting. Also consider installing radiant floor heating instead of using a gas furnace as these newer water heaters support radiant heating.

Note: It is difficult to find larger sized water heaters with Energy Factor’s not qualify.

The Federal Tax Credit for Energy Efficiency – Heating, Furnaces, and Boilers expired in 2011. The President chose not too extend this tax credit. Local energy utility companies like PG&E have their own energy efficiency rebates. To find out if rebates or other incentives are available in your area, visit the ENERGY STAR Rebate Finder.

Be sure to read our article on ways to save money and energy on your energy bill.

For 2011, the Federal Tax Credit for energy efficiency drops to 10%, up to a $500 maximum. (2010 Federal Tax Credit information)

• Oil and gas furnace and boiler incentives are $150
• Additional $50 for efficient furnace fans
• Oil furnaces, boilers, and gas boilers must be 95% efficient. (It was 90% in 2010)
• $300 cap for air conditioners
• Existing home and principal residence.   New construction and rentals do not qualify.
• Expires December 31, 2011 – Consult the What other rebates are available? below for other possible rebates.

The 2011 tax credit reverted to  2005-2008 levels. Anyone who previously took advantage of the program can’t apply for incentives that exceed $500.  IE If you claimed $500 between 2005 – 2008 on a previous energy efficiency project, or at least $500 tax credit from 2009 – 2010, you are ineligible for the 2011 energy efficiency tax credit.

If you used say $200 of the $500 energy efficiency tax credit from 2005 – 2008, and did not utilize the 2009 – 2010 energy efficiency tax credit, you would still have a $300 credit available.

If you have been thinking about replacing these items, you might as well upgrade now and save some money. Furnaces 15 years old or older can be replaced with much more efficient units. New models with electric ignition are the most efficient models.

Natural Gas or Propane Furnaces must have Annual Fuel Utilization Efficiency or
AFUE >= 95% to qualify for the tax credit. Oil Furnaces and as, Propane, or Oil Hot Water Boiler must have AFUE >= 95%. Not all ENERGY STAR products will qualify for the tax credit.

Gas fired furnace list. Here is a list of qualifying oil furnaces and oil boilers that may qualify. Also consider installing radiant floor heating instead of using a furnace.