Tax Credits

Q: What is the Federal Stimulus Tax Credit?
A: The Federal Stimulus Tax Credit is a group of enhancements that were made to the 2008 tax credits for energy-efficient home improvements made from January 1, 2009 through December 31, 2010 (through 2016 for renewable energy sources).

Q: What does this mean for me?
A: This means that you are eligible for a tax credit if you make qualified energy-efficiency improvements to your home.

Q: How much is the tax credit for?
A: For most improvements, the tax credit is 30% of the cost, up to $1,500.

Q: What about renewable energy sources?
A: Solar water heaters, solar panels, and geothermal heat pumps are a 30% tax credit for labor and material cost with NO cap on the credit.

Q: Does that include labor and material?
A: For improvements on the “shell” of your home, (windows, doors, roofing and insulation), the tax credit covers the 30% of cost of materials. Improvements such as new HVAC systems, heat pumps and boilers will cover 30% of the total installed cost, both labor and material costs.

Q: What if I made improvements before 2009, will a tax credit apply?
A: Unfortunately no, the tax credit only applies to energy improvements installed after January 1, 2009.

Q: When do the tax credits expire?
A: December 31, 2016 for renewable energy sources and December 31, 2010 for all other energy-efficiency improvements.

Q: Could this apply to my second property?
A: This is applicable to the taxpayers Primary Residence only.  Solar water heaters, solar panels and geothermal heat pumps may apply to second homes or rentals.

Q: Can I use the Federal tax credits in 2009 and 2010?
A: Yes, but the Federal tax credit has a lifetime cap of $1,500 except for renewable energy sources. Therefore, once you reach the $1,500 limit, you can no longer apply the tax credit.
Please consult your tax adviser for all tax rebates and incentives.