How has the new Stimulus bill affected the tax credits for energy efficient home improvements?

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 specific dollar amount (ex $300 for 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 $1500 maximum.
• The $200 cap on windows have been removed.

For further information on the tax credit on home improvement please check out energy star’s website: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

 *Note the above information was all taken from the www.energystar.gov website.

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