$1500 Consumer Tax Credit

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 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.

All Energy Star qualified Roofing, including Metal Roofs and Asphalt Roofs are eligible for a 30% of cost, up to $1,500. The roof must be expected to last 5 years or be warranted for 2 years in order to qualify.

The tax credit for HVAC and non-solar water heaters is 30% of the cost plus installation costs, up to $1,500. The law specifies installation costs include: "expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property." The tax credit for solar water heaters, solar panels, geothermal heat pumps, wind energy systems, and fuel cells is 30% of the cost plus installation costs, with no upper limit. The law specifies installation costs include: "labor costs properly allocable to the onsite preparation, assembly, or original installation of the property and for piping or wiring to interconnect such property to the home. Many windows, doors, insulation, and other energy efficient building products also qualify.

For more details please click here to see the complete list on the Energy Star web site.

• HVAC (Heating, Ventilation and Air Conditioning) systems
• Water Heaters (including solar)
• Solar Panels
• Geothermal Heat Pumps
• Wind Energy Systems
• Fuel Cells

• Windows
• Doors
• Insulation
• Roofs