Home Tax Credits Application and Energy STAR Facts to Know

Application and Energy STAR Facts to Know

Application and Energy STAR Facts to Know

Introduction

In today’s world, energy efficiency is an important concern that homeowners, businesses and institutions are paying more attention to than ever before. One of the most well-known symbols of energy efficiency is the Energy STAR certification. Energy STAR has been around since 1992 and has become the most well-known energy efficiency program worldwide. It was developed by the US Environmental Protection Agency (EPA) and the Department of Energy (DOE) and is designed to reduce energy consumption to protect the environment and to save money on utility bills. This article will discuss the benefits of Energy STAR, the impact it has on energy consumption and how it is changing the world for the better.

What is Energy STAR?

Energy STAR is a voluntary program that promotes energy-efficient products and buildings. It was created by the US Environmental Protection Agency (EPA) and the Department of Energy (DOE) in 1992. The program provides rating to products and buildings that are energy efficient. The Energy STAR rating is designed to make it easy for consumers to identify energy-efficient products or buildings that save energy without sacrificing performance. The rating system is based on the product or building’s ability to meet a specific set of energy efficiency criteria outlined by the EPA. Energy STAR is a program that certifies products across a wide range of categories including appliances, electronics, office equipment, lighting and home building products. It also rates commercial and residential buildings. The program is free for manufacturers and businesses to join, but they are required to meet certain EPA standards in order to be certified.

How Energy STAR Works

Energy STAR works by encouraging manufacturers and businesses to develop and sell energy-efficient products that meet a certain set of minimum criteria. These criteria are set by the EPA and the DOE and vary depending on the category or product type. The criteria for appliances, for example, are based on energy efficiency standards that are set by the DOE. Appliances like refrigerators, air conditioners and washing machines have a yellow EnergyGuide tag on them, which shows their energy efficiency rating. The higher the rating, the more energy-efficient the product is. Products with a higher Energy STAR rating are also eligible for rebates and other financial incentives.

Benefits of Energy STAR

The benefits of Energy STAR are many. For one, it helps consumers save money on their energy bills. By purchasing Energy STAR-certified products, households and businesses can save up to 30 percent on their energy costs. This can add up to significant savings over time. For example, a typical household can save up to $575 a year by replacing their old appliances with Energy STAR certified ones. In addition, Energy STAR helps to reduce greenhouse gas emissions and other pollutants. By purchasing energy-efficient products, consumers can significantly reduce their carbon footprint. Energy STAR also helps to promote innovation and new clean technologies. By incentivizing manufacturers and businesses to produce and sell energy-efficient products, Energy STAR encourages innovation and helps to drive advancements in clean technology.

Impact of Energy STAR

The impact of Energy STAR has been significant. According to the EPA, since the program’s inception in 1992, more than 3.5 billion Energy STAR-certified products have been sold worldwide. This has resulted in energy savings of more than 4 trillion kilowatt hours (kWh) and greenhouse gas emissions reductions of more than 3 billion metric tons. In addition, Energy STAR has helped to create more than 400,000 jobs in the US alone. Every year, Energy STAR-certified buildings and homes save consumers more than $30 billion on their energy bills.

The Future of Energy STAR

The future of Energy STAR looks bright. The program is continuously expanding to new product categories and sectors. In 2019, Energy STAR expanded its certification to include non-residential building design and construction. This extension is expected to save businesses and commercial tenants more than $10 billion over the next decade. Energy STAR is also working closely with the US Department of Housing and Urban Development (HUD) to expand its certification to public and low-income housing. In addition, the program is collaborating with the Canadian government to extend the Energy STAR certification to Canadian products and buildings. Energy STAR is committed to driving innovation and new technologies that promote energy efficiency and reduced environmental impact.

Conclusion

In conclusion, the Energy STAR program is a vital contributor to protecting the environment, saving consumers money on their energy bills and promoting technological advancements. With more than 3.5 billion products certified worldwide, the impact of Energy STAR is significant. The program has helped to create jobs, reduce greenhouse gas emissions and save money for consumers. Energy STAR is continuously expanding and evolving, and with new additions to its certification standards, it’s clear the program will continue to drive innovation and make a difference in the world.


The Energy STAR program allows for homeowners and purchasers to apply for a IRS energy tax credit specifically directed toward the heating and air-conditioning systems and devices used in their residence, as are understood to impact markers of environmental integrity such as greenhouse gas emissions.

The website for the Energy STAR program contains a section on the kinds of products under which an energy saving tax credit can be claimed, the maximum amount that may be saved by the taxpayer and the method by which this is determined, and the proper procedures for applying for coverage under the plan. As a rule, the IRS energy tax credit provided through Energy STAR is based upon thirty percent of the costs incurred in purchasing or creating the product.

An IRS energy tax credit cannot be applied for prior to the construction or purchase of a home. In this sense, the option is not provided as a way to obtain funding beforehand for construction or purchase.

The availability of an energy saving tax credit also comes with the stipulation that the residence is owned and not rented by the person applying for the Energy STAR benefit.

As a means for enforcing the strength of this requirement, Energy STAR generally holds that the residence under consideration for the savings of an energy saving tax credit must be the “primary” such residence of the person submitting the application. Several exceptions to this rule are, however, provided for by the IRS energy tax credit allocation process.

Energy STAR also provides for the allowed filing methods by which an energy saving tax credit can be obtained from the IRS. In 2009, for example, an IRS energy tax credit could be obtained by qualifying American residents by filing a 2009 IRS Form 5695, which would have been submitted with the taxes for that year.

As regards to the latter point, the year in which the products being considered for coverage is used by the owner and the year in which the owner may permissibly file for the appropriate IRS energy tax credit are provided for by the consideration of when the applicable residential device is “placed into service.” Further documentation is provided by the receipts for these items and the Manufacturer’s Certification Statement that should have accompanied their purchase.

Though the IRS energy tax credit is awarded based upon the ownership and use of certain objects in a home, it does not completely provide for the possibility that a homeowner may own more than one item which is covered by Energy STAR. To explain, a limit of $1500 is imposed on the energy saving tax credit that can be claimed from the government, and this limit will generally be observed for the homeowner’s applicable devices for the duration of the year.

Co-residents who are not married will also be covered under this energy saving tax credit limitation. Certain items do not have the energy saving tax credit limitation placed on them and can thus be used to increase the claimable benefit beyond $1500. “Vacation homes,” or residences rented for a significant part of the tax year can be covered by Energy STAR if the device in question is a geothermal heat pump, solar water heater, small device for collecting wind energy, or solar panel.