Stimulus Package Extends, Enlarges Energy Efficiency Tax Incentives

February 17, 2009:

Congress passed an economic stimulus package over the weekend that does much to promote energy efficiency. The American Recover and Reinvestment Tax Act of 2009 includes several provisions modifying and expanding the scope of the energy efficiency and renewable energy incentives. A few notable changes:

• Energy efficiency incentives for upgrades to existing homes have been extended, and are now available for 2009 and 2010.
• The financial cap for these incentives, which cover home envelope improvements as well as heating, cooling and water heating equipment, was increased to $1,500 (from $500).
• Lower caps, such as the $200 cap on new windows, have been abolished. The existing home incentives are now calculated at 30% of the cost of the installation (labor and equipment), up to the $1,500 cap.
• Standards for equipment eligibility have changed – see the individual topic pages under the Consumer tab for details (coming soon).
• On-site renewables (solar photovoltaic and hot water systems, small wind systems, and geothermal heat pumps) are now eligible for a tax incentive worth 30% of the total cost, without a cap.
• There are new incentives for plug-in electric vehicles, and plug-in conversion kits.

For additional Information, go to: www.energytaxincentives.org