There’s still time this year to complete home improvements that will make your home more energy efficient and qualify for a 2009 tax credit. U.S. homeowners can receive 30% or up to $1500 in federal tax credits for qualifying improvements. Installing an Energy Star Appliance is an example of the type of improvement that qualifies for the credit. Total credits of up to $10,000 can be earned if multiple improvements are completed.
Examples of qualifying improvements include new windows, doors, non-solar water heaters, insulation, and HVAC (heating, ventilation and air conditioning). The biggest credits are for sustainable energy equipment, including small wind turbines, geothermal heat pumps and solar energy systems. For these improvements, there is no cap on the 30% credit for costs. The sustainable energy credit applies to new and existing homes and to new home construction, and will be in effect until 2016. To find out more about solar energy for the home, see this earlier post.
Many state and local areas offer additional tax credits. To find out what’s available in your area, check the Database of State Incentives for Renewables and Efficiency.