Tax Incentives

On February 17, 2009, The American Recovery and Reinvestment Act of 2009 was enacted. This law made some significant changes to the energy efficiency tax credits. The highlights include:

• 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.

For more info see:   Energy Efficiency Tax Credit PDF  and Renewable Energy Tax Credit PDF.