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.