Federal Tax Credits for Energy Efficiency
On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are:
- The tax credits that were previously effective for 2009, have been extended to 2010 as well.
- The tax credit has been raised from 10% to 30%.
- The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
- The maximum credit has been raised from $500 to $1500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
| Product Category | Product Type | Tax Credit | Tax Credit | Notes |
|---|
| Water Heaters | Gas, Oil, Propane Water Heater | Energy Factor >= 0.82
or a thermal efficiency of at least 90%. | 30% of cost, up to $1,5002 | Not all ENERGY STAR gas storage and gas condensing water heaters will qualify for the tax credit. All ENERGY STAR gas tankless models will qualify. ENERGY STAR criteria: Gas Storage:
Energy Factor >= .62 Gas Tankless:
Energy Factor >= 0.82 Gas Condensing:
Energy Factor >= 0.8 For a partial list of qualifying products go to the Gas Appliance Manufacturing Association  |
| Electric Heat Pump Water Heater | Same criteria as ENERGY STAR: Energy Factor >= 2.0 | 30% of cost, up to $1,5002 | All ENERGY STAR qualified electric heat pump water heaters qualify for the tax credit. |