What is Energy Star?

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Real Estate

What do those "Energy Star" labels mean exactly?

 

ENERGY STAR is a joint program of the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy helping us all save money and protect the environment through energy-efficient products and practices.

In 1992, the (EPA) introduced ENERGY STAR as a voluntary labeling program designed to identify and promote energy-efficient products to reduce greenhouse gas emissions. Computers and monitors were the first labeled products. Through 1995, EPA expanded the label to additional office equipment products and residential heating and cooling equipment. In 1996, EPA partnered with the U.S. Department of Energy for particular product categories. The ENERGY STAR label is now on major appliances, office equipment, lighting, home electronics, and more. EPA has also extended the label to cover new homes and commercial and industrial buildings.

On October 3, 2008, President Bush signed into law the "Emergency Economic Stabilization Act of 2008." This bill extended tax credits for energy efficient home improvements (windows, doors, roofs, insulation, HVAC, and non-solar water heaters). Tax credits for these residential products, which had expired at the end of 2007, will now be available for improvements made during 2009. However, improvements made during 2008 are not eligible for a tax credit. So for once, if you have been putting off making those improvements you’ve talked about for years, procrastination may be the better part of valor.

The residential tax credit is available for these energy efficient improvements, placed in service in 2009:

l windows

l doors

l roofs

l insulation

l HVAC

The tax credit for solar water heaters and solar panels, which remained in effect for 2008, has been extended to 2016. If you are building a new home, you do not qualify for the tax credits for "eligible building envelope components" (windows, doors, insulation, roofs) or "qualified energy property" (HVAC & non-solar water heaters). However, the tax credit for photovoltaics, solar water heating, and fuel cells is available for homeowners building new homes.

Not all ENERGY STAR qualified homes and products qualify for a tax credit. Be sure to check www.energystar.gov to see if your home or product qualify.