On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some
significant changes to the energy efficiency tax credits.
The highlights are:
The tax credits that were previously effective for 2009, have been extended to 2010 as well.
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.
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.
