New Federal Energy Efficiency Tax Credits for Homes Available in 2009
As part of the Emergency Economic Stabilization Act of 2008 (H.R. 1424) signed into law on October 3, new energy efficiency tax credits will allow homeowners to lower both their monthly home energy bills and their federal income taxes in 2009 as they contend with escalating winter energy prices. Using the tax credits of up to $500 to make specific energy efficiency home improvements also can make homes more comfortable and reduce air pollution and greenhouse gas emissions.
They are largely the same as those that were in effect in 2006 and 2007, with some new criteria for qualifying products and equipment. The overall $500 cap can be reached in several ways with the purchase and installation of energy-efficient products including:
- Insulation, roofing, and exterior doors;
- Central air conditioner, heat pump, water heater, or bio gas (e.g. corn) stove;
- Exterior windows; and
- Furnace or boiler
A separate tax credit is also available for ENERGY STAR qualified geothermal heat pumps, covering 30 percent of the cost, up to $2,000.
More details are on the Alliance to Save Energy website at www.ase.org/taxcredits.