Energy Efficient & Renewable Energy Federal Tax Credits:

The Energy Policy Act of 2005 intially created federal tax credits for the installation of specific types of energy efficient home improvements and renewable energy systems such as solar, wind and geothermal systems. As part of the American Recover and Reinvestment Tax Act of 2009, the federal tax incentives have been expanded, extended and modified. **Please consult your tax professional for individual tax advice on this subject.**

• The timeframe for adding upgrades into service has been extended through 2009 & 2010 for Energy Efficient Upgrades and 2016 for Renewable Energy Systems.
  
  
• The total cap on energy efficient upgrades was raised from $500 to $1,500! The incentives are now calculated at 30% of the cost of the installation, up to the $1,500 cap. The $1,500 tax credit is the maximum allowed to be claimed for all of 2009 & 2010. In other words, you cannot claim $1,500 for each year, just the total of $1,500 between both years. Tax incentives for energy efficient upgrades are available for existing, primary homes only (not available for new construction.) *Check with your tax professional on whether the cost of labor can be included in the calculations.
  
  
• Renewable energy systems such as solar photovoltaic, solar hot water, small wind systems and geothermal heat pumps now no longer have a cap and are available for a tax incentive of up to 30% of the cost!!! Tax incentives for renewable energy systems are available for primary homes, second homes, investment properties and new construction homes.
  

What kinds of energy efficient improvements qualify?

Insulation
Replacement windows & skylights
External doors
Pigmented metal roofs
High-efficiency gas, oil & propane furnaces and boilers 
High-efficiency central air conditioning units, including air-source & ground-source heat pumps 
High-efficiency fans for heating and cooling systems
High-efficiency water heaters, including heat pump water heaters

What kinds of renewable energy systems qualify?

Solar Photovoltaic Systems
Solar Hot Water Systems 
Small Wind Systems
Geothermal Heat Pump Systems 

Click on the links below to learn more:

Solar Photovoltaic Systems
Solar Hot Water Systems
Wind Systems
Geothermal Heat Pumps

Click Here for an online estimator to get an idea on price, savings and systems size. Tax incentives as well as the break even time frame is included in the estimate.

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