Federal Tax Credits For Energy Efficiency

Many people think that the Federal Stimulus Bill only deals with checks to back to tax payers. However, recent Federal Legislation in the form of the American Recovery and Reinvestment Act of 2009 has prompted some significant home improvement tax credits that you should be aware of.

New tax laws have been passed that provide nice tax credits for energy efficient home improvements. Check out the Energy Star site for specific details on the tax credits that are available. Basically the government is helping to subsidize home improvements and construction that promote energy efficiency in our homes.

Tax Credits for 2009 and 2010

The following items are for existing homes, tax credits for 2009 and 2010, get up to 30% of the cost with a maximum total of $1500 credit:

  • Windows and Doors
  • Insulation
  • Roofing
  • HVAC
  • Non Solar Water Heaters
  • Biomass Stoves

The following items are for existing and new homes, tax credits through 2016, get up to 30% of the cost with no upper limit:

  • Geothermal Heat Pumps
  • Solar Panels
  • Solar Water Heaters
  • Small Wind Energy Systems
  • Fuel Cells

You can view detailed information and limitations at the Energy Star site. The 30% no upper limit items are certainly very exciting especially when you consider that you’ve got until 2016 to take advantage. Around here some local banks are even offering lower interest rates on home equity loans that are used specifically for some of these energy efficient projects.

Do Your Research

As a member of the local planning board I must warn you to be very proactive in studying your local zoning requirements before constructing some of these projects. Recent local legislation has set specific laws in place for wind projects, biomass stoves and geothermal wells. Be certain your zoning requirements can be met for your specific project before you waste thousands of dollars on something that’s not allowed.

With these current tax incentives it’s certainly a great time to invest in our homes and our environment. How many of you plan on installing some of the items on these lists? If so which items are you considering? If you’re considering a solar system I’d recommend you go check out Sun Volt Solar Blog written by a friend of mine. It has some really great information on solar systems.

If you’re interested in installing your own Energy Efficient replacement windows be sure to read: How To Measure and Order Replacement Windows.

Todd Fratzel

I'm full time builder for a large construction company in New Hampshire. I run their design-build division that specializes in custom homes, commercial design-build projects and sub-divisions. I'm also a licensed civil and structural engineer with extensive experience in civil and structural design and home construction. My hope is that I can share my experience in the home construction, home improvement and home renovation profession with other builders and home owners. I'm also the Editor-in-Chief and Founder of Tool Box Buzz. Please feel free to contact me if you have any questions, suggestions or you'd like to inquire about advertising on this site.

View Comments

  • This is very useful information and will help people to know about finance requirement. Tax credits for energy efficient home improvements is very good idea.

  • who do i talk to about a stimulus rebate on replace a door in my dining room to my deck due to rotted wood?

    can someone point me in the right direction
    thank you
    570-588-0880

  • i just hope that the economy would recover very soon because of the Stimulus Package given by the government.

  • i hope that those Stimulus Package coming from the government would really kick start the Economy. the economic recession has been very bad on my business. 2.

  • I just had my house built and when planning I knew I wanted to be energy conscious – even for the doors and windows. I used Provia energy efficient doors and could not be happier with the results! I also am eligible for the tax credit!

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