Energy Efficiency Tax Credit

I don’t know about you but spring always makes me feel like doing more around the house.  Checking some of those to-dos off the list and just sprucing the place up.  If you are always thinking “green” like me, then energy efficiency might be on the top of your to-do list.  Good news!  The stimulus package has something in it for you and me.

As part off the Economic Stimulus package, the American Recovery and Reinvestment Act of 2009 modifies and extends federal tax credits for eligible building components that improve energy efficiency. To be eligible, windows, doors and skylights must have both a U-Factor equal or less than 0.30 and Solar Heat Gain Coefficient (SHGC) equal to or less than 0.30.

If you purchase and install between 1/1/2009 and 12/31/2010, you may qualify for a credit of 30% of the product cost up to $1500 on you Federal income tax.

  • Tax credit is for the cost of the product only and does not include installation costs.
  • Save your sales receipt reflecting the cost of product only and your NFRC/Energy Star label.
  • Consult with your tax planner before purchase and review all applicable IRS guidelines.

Just something to keep in mind this spring as you start to go “green”!

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3 thoughts on “Energy Efficiency Tax Credit

  1. Trisha Emish says:

    In my opinion, the biggest story in this new program is the 30% credit, with no cap, on Geothermal heating and cooling systems. While initial system costs are higher than traditional units, you’ll save more than with any other upgrade. If you finance, the monthly cost of the system is lower than the savings you’ll see from the first month of use.

    And, it is the cleanest system for the environment.

    If you are considering an upgrade or buying a new home, Geothermal is a great consideration.

  2. greenhomesamerica says:

    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 be posted updates as they before available.

    Note also the the cap on solar thermal and solar PV systems has been removed (along the lines of geothermal). (BTW, I do have a different take on geothermal than Trisha. Geothermal is great–but only after making necessary energy-efficiency improvements reducing the size of the system and especially the site work or drilling necessary for a geothermal system. This can reduce the system cost by $10,000-20,000!! AND increase comfort of the home at the same time.)

    Thanks,
    Mike

  3. greenhomesamerica says:

    typo on the last sentence of the second paragraph. it should read “And I will be posting updates as they become available.”

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