Are you ready to install solar panels or a wind turbine at your house? How about adding insulation or installing more energy efficient windows? 2009 may just be the year to take the plunge, thanks to some new, extended and improved tax credits.
Details can vary depending on your project but energy efficient home improvements including replacement windows (capped at $200), insulation (10% of the cost, capped at $500), sealing cracks in the shell of your house and in the duct work, and energy efficient water heaters and furnaces (capped at $300) can get you some very helpful tax credits.
The existent tax credit for installing solar panels was extended for 2009 giving you a 30% credit against the cost of your equipment with the previous $2,000 cap removed. Solar water heating systems are eligible for credits of up to $2,000.
Also included for 2009 are tax credits for wind turbines (up to a maximum of $4,000), home fuel cells (30% of system costs), geothermal heat pumps (up to $2,000), and “biomass” stoves up to $300.
There’s even a credit for plug-in hybrid electric cars ($2,500 – $7,500). Interestingly, although credits for gasoline-electric hybrids are still in effect, Toyota and Honda hybrids are not included. Certain light-duty diesel vehicles are also eligible in 2009.
In most cases, tax credits are offered against equipment costs, not installation costs.
Your state may also be offering tax incentives, so be sure and check all avenues and read all the fine print. Remember, a lot of these incentives are included in the struggling to pass stimulus package and things are changing daily, so do your research!
While not an offer to fund your energy efficient home upgrades, these tax incentives may be just what you need to push your project over the edge to affordable in 2009!
I’m adding some insulation and looking at solar panels for my house. What’s on your list?
And remember, the Bummas Giveaway is going on until Sunday March 1st at 7pm EST, and all you have to do to enter is comment on the giveaway post with a valid email address; if you haven’t entered yet, what are you waiting for?