Making Energy Work: Building a Sustainable Energy Economy in the Southeast

Federal Incentives

Information for all incentives is found at the Federal DSIRE  web page.

Residential Energy Efficiency Tax Credit
The Energy Policy Act of 2005 established tax credits for energy efficiency improvements in the building envelope of existing homes and for the purchase of high-efficiency heating, cooling, and water heating equipment. Efficiency improvements and/or equipment must be placed in service from January 1, 2006 through December 31, 2007 and must serve a dwelling in the United States owned and used by the tax payer as a primary residence. The maximum amount of homeowner credit for all improvements combined is $500 during the two-year period of the tax credit. 
 
Performance and quality standards for tax credit eligibility vary by technology. See 26 USC § 25C  for details. In addition, the Internal Revenue Service (IRS) has provided the following interim guidance, pending the issuance of regulations, relating to the credit: IRS Notice 2006-26  
 
For more detailed information on qualifying products, visit the Energy Star Web site.

Federal Loan Programs

Energy Efficient Mortgage
Energy efficient mortgages (EEMs) can be used by homeowners to finance a variety of energy efficiency measures, including renewable energy technologies, in a new or existing home. The federal government supports these loans by insuring them through FHA or VA programs. This allows borrowers who might otherwise be denied loans to pursue energy efficient improvements, and it secures lenders against loan default and provides them with confidence in lending to customers whom they would usually deny.

Details can be found at the DSIRE website.

USDA Section 9006 Renewable Energy Systems and Energy Efficiency Improvements Program

Section 9006 of the 2002 Farm Bill requires the U.S. Department of Agriculture (USDA) to create a program to make direct loans, loan guarantees, and grants to agricultural producers and rural small businesses to purchase renewable-energy systems and make energy-efficiency improvements. Funds were appropriated for FY 2002 through FY 2007.  Funding after FY 2007 is currently under consideration.