As part of the Taxpayer Relief Act, Congress has extended Federal Consumer Tax Credits for Energy Efficiency to 2013, along with making them retroactive for 2012. In addition, tax credits for geothermal heat pumps, small wind turbines, solar energy systems, and fuel cells are still available through 2016.

The 10% tier includes the most common and most affordable improvements to increase indoor comfort, but for some products like insulation, the tax credits only apply to the cost materials. The incentives are designed to make purchase of better quality products more attainable by reducing purchase cost.

The 30% tier includes high tech options like solar electric and ground source heat pump systems.

10% Tax Credit Tier

Tax Credit: 10% of cost up to $500 total for all categories or a specific amount from $50–$300
Expires: December 31, 2013
Details: Must be an existing home & your principal residence. New construction and rentals do not qualify.

Biomass Stove

• Stove and Installation $300

Heating, Ventilating, Air Conditioning (HVAC)

• Advanced Main Air Circulating Fan $50
• Air Source Heat Pumps $300
• Central Air Conditioning $300
• Boiler or Furnace fueled by Gas, Propane or Oil $150

Insulation

• Insulation Materials 10% up to $500
• Air Sealing Materials 10% up to $500

Roofs (Metal and Asphalt)

• Solar Reflective Roofing Material 10% up to $500

Water Heaters

• Tank Heater fueled by Gas, Propane, or Oil $150
• Heat Pump Water Heater $300

Windows, Doors, Skylights

• 10% of the cost, capped at $200

30% Tax Credit Tier

Tax credit for 30% of cost with no upper limit
Expires: December 31, 2016
Details: Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.

Geothermal Heat Pumps

• 30% of cost, no limit on tax credit

Small Wind Turbines (Residential)

• 30% of cost, no limit on tax credit

Solar Energy Systems

• Solar Thermal Systems 30% of cost, no limit on tax credit
• Solar Electric Systems 30% of cost, no limit on tax credit

Selecting the right combination of home energy upgrades is determined by a comprehensive home energy assessment by a certified building analyst. Getting full performance from any of these products requires installation by certified contractors to specific standards. Participating AlabamaWISE contractors are certified Building Analysts and qualified to recommend a set of improvements to achieve desired home performance goals. Visit AlabamaWISE.org/improve to  find contractors and contractor ratings.