Energy Credits
By Tracey Yergey
The American Recovery and Reinvestment Act of 2009 that was passed by Congress on February 17, 2009 increased a number of energy incentives.
Nonbusiness Energy Property Credit (Energy-Efficient Home Improvements)
The law increases the rate to 30% of the cost of all qualifying improvements and raises the maximum credit limit to a total of $1,500 for improvements placed in service in after 2008 and before 2011. Qualifying improvements include the addition of insulation, energy-efficient exterior windows, energy-efficient heating and air conditioning systems and advanced main circulating fan. It also includes energy-efficient biomass fuel stoves (includes wood and wood waste and residues). Also added are asphalt roofs with appropriate cooling granules.
Important - Taxpayers who used their $ 500 lifetime limitation that applied in 2006 and 2007 can now claim an additional $1,500 of credits in 2009 and 2010.
Residential Energy Efficient Property Credit
For property placed in service before 2017, an individual is allowed an annual credit for the purchase of residential energy efficient property equal to the sum of:
- 30% of the amount paid for qualified solar energy property
- 30% of the amount paid for qualified solar water heating property
- 30% of the amount paid for small wind energy property
- 30% of the amount paid for qualified geothermal heat pump property