Tuesday, October 21, 2008

Lost: A year of Energy Tax Credits


Great news!

(Question; Why did it take so long and why wasn't it retroactive for 2008)


Home improvement tax credits will be available, nationwide, for 2009. This is a continuation of the ENERGY POLICY ACT OF 2005. These home improvements include new energy efficient windows, doors, HVAC equipment and added insulation. Click on title of blog entry or here to be whisked away to the Energy Star site that explains all.
While it is disappointing that we lost a year of tax credit incentives and possible work for those of us in the building industry, this should be helpful. I'm also incredulous that the maximum amount of tax credit is still just $500. This amount includes all work done in 2006 ,2007 and 2009.

The wind and solar energy systems tax credits are exciting.




  • Small Wind - Tax credits are available to homeowners who install residential small wind turbine systems. The credits are available for systems placed in service from January 1, 2008 to December 31, 2016. The tax credit is for 30% of the cost of the system, up to $500 for each half kilowatt of capacity with an overall maximum of $4,000.

















  • Solar - Tax credits are available for qualified solar water heating and photovoltaic systems. The credits are available for systems placed in service from January 1, 2006 through December 31, 2016. The tax credit is for 30% of the cost of the system, up to $2,000. After December 31, 2008, this $2,000 cap will be removed for photovoltaic systems (but not solar water heaters). This credit is completely separate from the $500 home improvement credit.