New Tax Credits Boost Consumer Savings
In February of 2009, President Obama signed The American Recovery and Reinvestment Act of 2009 (aka the Stimulus Bill). This act makes significant changes to the energyefficiency tax credits by increasing the percentage of costs from 10 to 30 percent and the lifetime cap to $1,500. The list of eligible energy efficiency improvements has been expanded and offers homeowners even greater incentive.
Existing Homes Only
Tax credits are available at 30% of the cost, up to $1,500, in 2009 and 2010 for:
- HVAC including Central A/C, Air Source Heat Pumps, Natural Gas or Propane Furnaces, Oil Furnaces, Gas, Propane or Oil Hot Water Boilers and Advanced Main Air Circulating Fans.
- Water Heaters including Gas, Oil, Propane and Electric Heat Pump.
Existing Homes and New Construction
Tax credits are available at 30% of the cost, with no upper limit through 2016 for:
- Geothermal Heat Pumps
- Solar Water Heating -
At least half of the energy generated by the “qualifying property” must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household. The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling. The system must be certified by the Solar Rating and Certification Corporation (SRCC).
- Solar Panels (Photovoltaic Systems) -
Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.
Remember, not all products on the market qualify for the tax credits. Consult your tax advisor to be sure your home improvement qualifies. For more information on how you can take advantage of the tax credits by installing one of these high efficiency systems, contact us today to schedule a free in-home consultation.
