Energy Credits and Rebates

Tax Credits

The American Recovery and Reinvestment Act (ARRA) provides numerous tax incentives for individuals to invest in energy-efficient products.

The new law increases the energy tax credit for homeowners who make energy efficient improvements to their existing homes. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010.

The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems.

A similar credit was available for 2007, but was not available in 2008. Homeowners should be aware that the standards in the new law are higher than the standards for the credit that was available in 2007 for products that qualify as “energy efficient” for purposes of this tax credit. The IRS has issued guidance that will allow manufacturers to certify that their products meet these new standards.

Until the guidance is released, homeowners generally may continue to rely on manufacturers’ certifications that were provided under the old guidance. For exterior windows and skylights, homeowners may continue to rely on Energy Star labels in determining whether property purchased before June 1, 2009, qualifies for the credit. Manufacturers should not continue to provide certifications for property that fails to meet the new standards.

Note: You will have to meet the IRS rules to qualify for these deductions.

CPS Energy is offering a rebate for:

Rebates for central air conditioning systems and central heat pump systems are determined by the overall seasonal energy efficiency ratio, or SEER. Central units that qualify for a rebate must have a SEER rating of 15.0 or greater. Your licensed air conditioning contractor or service technician can provide that information.

Window unit air conditioners that qualify for a rebate must be ENERGY STAR® certified. Window units of 8,000 BTU or less qualify for a one-time $50 credit. Window units greater than 8,000 BTU qualify for a $100 credit.

Duct Repair or Replacement – 25 percent, up to $1,500 per system and $2,500 per customer Duct Testing – 50 percent, up to $250 per system.

Air Flow Performance Rebates are available only for work completed on existing AC systems. This program is not applicable to new construction. The 2009 Air Flow Performance Certification program will include rebates for the repair and/or replacement of duct work needed to improve the overall efficiency of your HVAC system and for testing that shows improvement to the HVAC system. Rebates are not available for duct sealing. The 2009 Air Flow Performance Certification Application is not available on the Web site. Copies of the application are only available through Air Flow Performance Registered Contractors.

CPS Energy is offering a rebate of $0.20 per square foot of roof area on an ENERGY STAR "Cool Roof."

CPS Energy is offering a rebate of $0.15 per square foot of attic insulation installed. The rebate amount is based on the amount of insulation actually installed over conditioned space.

CPS Energy is offering a rebate of $1.50 per square foot on ENERGY STAR Windows.

Save more energy and money with a $100 rebate from CPS Energy toward the purchase of any natural gas dryer.

There are additional rebates available so for detailed information about each and how to apply visit:

CPS Rebates

Energystar

SAWS "Wash Right" Washer Rebates:

If you're in the market for a new washer and dryer, CPS Energy and SAWS are working together to help you get both at a discount price.

A high-efficiency washing machine not only reduces energy use by up to 70 percent, but water use as well by up to 50 percent. Now, when you install a high-efficiency machine, you can pick up a $100 rebate on your SAWS water bill. Check out details on SAWS' Wash Right Rebates and approved models.