NEWS FLASH! President Obama signed a stimulus bill!!! What?! OK, talk about old news…but it has grander tax implications for Americans. The American Recovery and Reinvestment Act of 2009 (ARRA) has some significant changes to the energy efficiency tax credits.
Here are the highlights:
- The tax credits that were previously effective for 2009 only, buy they have been extended to 2010.
- The tax credit has been raised from 10% to 30%!
- The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost. This could greatly increase your credit potential.
- The maximum credit has been raised from $500 to $1500 for the two years (2009-2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
- The $200 cap on windows has been removed, but the requirements for windows has been increased significantly. Not all ENERGY STAR qualified windows will qualify.
For a more robust & comprehensive list of changes, please visit the Energy Star website website for details.

July 9, 2010 at 2:35 pm
We have installed a solar water heater at home and it is also as good as conventional water heaters.*`: