• Homeowners save money in the short term with a tax credit of up to $1,500.
• Homeowners continue to save money down the road with high-efficiency comfort.

Qualifying Equipment for Tax Credits

The American  Recovery and Reinvestment Act of 2009 provides a tax credit to help offset the costs of making energy efficiency improvements to your home.  Some key details of the program are as follows:

• The tax credits apply to a variety of products and their installation costs such as windows, doors, heating and cooling equipment and more that meet particular efficiency standards.
• The amount of the credit is equal to 30% of the installed total cost of the qualifying products, up to a total of $1,500.
• If a qualifying tax credit does not total $1,500.00, the remaining credit amount can be “banked” and earned at a later time with a separate qualifying purchase or purchases. 

Longer Term

The new tax credits are retroactive to January 1, 2009, and expire on December 31, 2010.   The $1500 limit is for all improvements made during the two year term, not $1500 each year.

Per-Appliance Caps Removed

Homeowners may use the entire $1500 tax credit limit on a single qualifying improvement.   The previous per-appliance caps that limited the homeowner to just $150 for a high efficiency furnace or $300 for a high efficiency central air conditioner or heat pump have been removed.

Lifetime Limit Removed

Homeowners that previously claimed tax credits in 2006 or 2007 are eligible for the full $1500 limit.

Expanded Geothermal Tax Credits

Homeowners who install geothermal heat pump systems may be able to claim up to 30% of the installed costs in tax credits in the year the system is placed into service.  The $2000 tax credit limit has been removed.  The geothermal tax credit has a longer term, from January 1, 2009 and expires December 31, 2016.