Brent Financial Group - The Home Energy Credit is Back

The economic stimulus act, passed in February, restores the energy-efficient home improvement tax credit that expired in 2007. In addition, the credit has been expanded, including raising the maximum credit available for the most common improvements to $1,500.

Under the new law, you can claim 30% of the cost of new windows and doors, insulation, metal or asphalt roofs, heating and cooling systems, water heaters and biomass stoves. Purchases must be made for an existing home between January 1, 2009 and December 31, 2010. There are specific standards as to what equipment qualifies. However, the IRS will allow manufacturers to certify that their products meet the standards, and homeowners can rely on the manufacturer's certification. Installation costs can only be included for certain types of improvements.

A 30% credit on geothermal heat pumps, solar panels, solar water heaters, fuel cells, and small wind energy systems is available through 2016. Both new construction and improvements to an existing home qualify, and there is no $1,500 cap on these types of systems.

For more information, visit www.energystar.gov/taxcredits

(June 26, 2009)

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