|
The American Recovery and Reinvestment Act of 2009 made
significant changes to the existing energy efficiency
tax credits. The updates apply to products "placed in
service" starting January 1, 2009 through December 31,
2010. Additionally, tax credits that were previously effective
for 2009 have been extended to 2010 and the tax credit
has been raised from 10% to 30%. The tax credits that
were for a specific dollar amount are now equated to 30%
of the cost of the qualifying item. The maximum credit
has been raised from $500 to $1,500 total for the two
year period (2009-2010).The $200 cap on windows has been
removed, but the requirements for windows (after June
1, 2009) has been increased significantly.
Some renewable energy improvements, including small wind
systems, geothermal heat pumps, solar electric systems,
solar water heating, etc. can receive a 30% tax credit
for systems placed in service before December 31, 2016;
the previous tax credit cap of $1,500 no longer applies.
Installation costs are covered for heating, ventilation
and air conditioning systems, water heaters (including
solar, solar panels, geothermal heat pumps, and wind energy
systems. The tax credit for HVAC, biomass stoves, and
non-solar water heaters is 30% of the total cost (product
+ installation) up to $1,500. The credit for solar water
heaters, solar panels, geothermal heat pumps, wind energy
systems, and fuel cells is 30% of the total cost product
plus installation costs, with no maximum dollar limit.
Installation costs are not covered by the tax credit for
windows, doors, insulation or roofs.
Visit the U.S.
Department of Energy website for more in-depth details
of the qualifying credits available.
Note: The energy efficiency improvements that
were eligible for a tax credit in 2008 were as follows:
solar water heaters (30%, up to $2,000); geothermal heat
pumps (30%, up to $2,000); solar panels (30%, up to $2,000);
small wind energy systems (30%, up to $4,000); and fuel
cells (30%, up to $500 per .5 kW of power capacity). To
receive the credit the taxpayer needs to file IRS Form
5695 'Residential Energy Efficient Property Credit'
|
