Tax Credits for Energy Efficient Home Improvements

The American Recovery and Reinvestment Act of 2009 made some changes to the tax credits allowed for energy efficient improvements made to a residence. Prior to 2009, the credit was 10% of the cost of certain improvements such as replacement windows. The old law imposed a lifetime limit of $500 on the credit.

Under the new 2009 law, the credit amount is increased to 30% of the cost of energy efficient improvements and the maximum allowed credit is increased to an aggregate of $1500 for the years 2009-2010 which are currently the only years to which the new law applies. The new law also expands the types of improvements that are eligible for the credit to include water heaters and HVAC systems.

The best resource I have found for researching this credit is the Energy Star website's tax credit section. This section gives a complete listing of eligible improvements as well as links to other websites that list model numbers that qualify for the credit.

Another resource you might want to look at is a news release from the IRS website.