How has the new Stimulus bill affected the tax credits for energy efficient home improvements?
On February 17, 2009,
President Obama signed a stimulus bill (The American Recovery and Reinvestment
Act of 2009) that made some significant changes to the energy efficiency
tax credits.
The highlights are:
- The tax credits that were previously effective for 2009, have been extended to 2010 as well.
- The tax credit has been raised from 10% to 30%.
- The tax credits that were for a specific dollar amount (ex $300 for a AC), have been converted to 30% of the cost.
- The maximum credit has been raised from $500 to $1500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
- The $200 cap on windows has been removed.
Get the full details on tax credits for energy efficient home improvements at Energystar.gov
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Good stuff. Be careful as there are specific requirements for all of the measures. A couple of things to consider: There is still an open question regarding whether the 30% applies to the cost of materials only or to the total installed cost. Previously the provision was for material only–it appears to be the case now, but it’s not completely clear.
I provide a couple of good links to specific requirements at http://greenhomesamerica.wordpress.com/2009/03/05/arra-stimulus-package-1500-home-energy-improvement-tax-credits-redux/ And I will be posting updates as they become available.
Thanks,
Mike