Energy Tax Credits
Energy Tax Credits
In February 2009 President Obama signed into law the American Recovery and Investment Act of 2009. This bill extended and modified the tax credit for windows, doors, and skylights established in the energy policy Act of 2005.
Consumers who purchase and install specific products such as energy-efficient windows, insulation, doors, roofs and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500 for improvements placed in service starting January 1, 2009 through December 31, 2010.
Tax credits are generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar for dollar while a deduction only removes a percentage of the tax that is owed.
See EnergyStar.gov’s Federal Tax Credits for Energy Efficiency for a complete summary of energy efficiency tax credits available to consumers.
