Posted to: Taxes

Federal Tax Credit For Energy Efficiency

I love it when readers tell me some great tips.  When Obama signed the stim. bill, the tax credit on energy efficiency items was extended into 2010.  Tax credits are a good thing.  An increase in the amount of the tax credit is even better.  Now if I could only convince my husband why we need a Biomass Stove.

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 CAC), 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, but the requirements for windows has been increased significantly. Not all ENERGY STAR qualified windows will qualify.