Federal Tax Credits available for Homeowners under the Federal Economic Recovery Act of 2009 admended as of 2/20/2009.

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 available to homeowners for improving the energy efficiency of their homes. 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.

Details on Federal Tax Credits Available for Heating and Cooling Equipment Upgrades and Improvements:

• Qualified equipment improvements must be "placed in service" between January 1, 2009 and December 31, 2010
• Imrovements must be for taxpayers principal residence
• Maximum amount of rebate for improvements is $1,500 in 2009 & 2010 for most home improvements (geothermal heat pumps, solar water heaters, solar panels, fuel cells, and windmills are not subject to this cap)
• Homeowners should save improvement receipts and the Manufacturer Certification Statement,
• Energy Efficiency improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version)

Rebate Amounts available for High Efficiency Gas Furnaces- Natural gas or Liquid Propane furnaces with an Annual Fuel Utilization Efficiency (AFUE) rating of 95% or greater are eligable for a Federal Tax Credit up of up to 30% the cost with a maximum of $1500.*

Rebates Amounts available for High Efficiency Air Conditioners- Central air conditioning systems with a Seasonal Energy Efficiency Rating (SEER) of 16 (EER 13) or Greater are eligible for a Federal Tax Credit up of up to 30% the cost with a maximum of $1500.*

Rebates Amounts available for High Efficiency Air Source Heat Pumps- Central Heat Pump systems with a Seasonal Energy Efficiency Rating (SEER) of 15, EER 12.5, HSPF 8.5,or Greater are eligible for a Federal Tax Credit up of up to 30% the cost with a maximum of $1500.*

Rebate Amounts available for High Efficiency Gas, Propane or Oil Fired Hot Water Boilers- Natural gas or Liquid Propane boilers with an Annual Fuel Utilization Efficiency (AFUE) rating of 90% or greater are eligable for a Federal Tax Credit up of up to 30% the cost with a maximum of $1500.*

Rebate Amounts available for High Efficiency Gas, Propane or Oil Fired Water Heaters- Natural gas or Liquid Propane water heaters with an Energy Factor rating of 0.82 or a thermal efficiency of at least 90% are eligable for a Federal Tax Credit up of up to 30% the cost with a maximum of $1500.*

*NOTE, the maximum 2009 Tax Credit amount of $1500.00 is per homeowner for all improvements combined.