The American Recovery and Re-investment Plan is the new stimulus package signed by President Obama. This plan provides many tax breaks for homeowners upgrading their homes with green energy efficient systems between Jan. 1, 2009 and Dec. 31, 2010.
Below are systems that qualify for a 30% tax credit up to $1,500.
- Energy efficient skylights, doors, and windows
- Energy efficient storm doors and storm windows
- Energy star labeled asphalt and metal roofs
- Air source heat pumps
- Propane, oil or natural gas furnace, water heater or boiler
- Advanced main air circulating fan
- Electric heat pump water heater
- Energy efficient central air conditioners
- Bio mass stove
- Solar water heater ($2,000 cap)
Below are the systems with a 30% tax credit without the cap
- Geothermal heat pump
- Photovoltaic solar panels
- Windmill generators
- Fuel cells
These tax credits should be taken on IRS form 5695.
All makes in these product lines do not qualify so you must do your research. You can find more info at http://www.energystar.gov .
First time home buyers can receive an $8,000 tax credit if they buy between Jan. 1, 2009 and Nov. 31, 2009 and live in the home for 3 years after purchase. The tax credit can be taken this year but if you move out before 3 years you must pay the money back.
As in everything governmental there are too many details in this plan to explain here but as I research it further I will report on any significant facts I uncover. Keep in mind it would probably take a team of lawyers and economists to understand everything in this plan. So you may not want to count on me deciphering every detail and do your own research on any part that interests you.