How has the new Stimulus bill affected the tax credits for energy efficient home improvements?

On February 17, 2009/2010, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009/2010) that made some significant changes to the energy efficiency tax credits. The highlights are:

* The tax credits that were previously effective for 2009/2010, have been extended to 2010 as well.

* The tax credit has been raised from 10% to 30% of material cost of qualifying products.

* 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 (2009/2010–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.

* The $200 cap on windows has been removed.

For more updated information because this changes sometimes visit the US Dept of Energy Energy Star link.

How to get your tax credit from the IRS:

1. Present your sales receipt or paid invoice detailing the labor and material cost of the qualifying products.

2. Get the Manufacturer's Certification Statement of each product which assures the IRS that the product qualifies.

3. Attach these items to IRS form 5605.