Economic Stimulus Bill PDF Print E-mail

Energy StimulusAbout Economic Stimulus Incentives

On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act (also known as the Economic Stimulus Bill) into law. This legislation combines spending and tax incentives designed to get the American economy moving again by investing in our nation’s roads and energy infrastructure, and by providing incentives for increasing the efficiency and performance of America’s homes and commercial buildings. 

  • Maximum tax credit amount - $1500. The legislation specifies 30% of the cost of qualifying equipment, including installation costs, subject to a $1500 maximum per homeowner.
  • The tax credit is effective for all qualified systems installed from 1/1/2009 through 12/31/2010.
  • The tax credit is only valid for taxpayers that own their home and it is used as the principal residence. 

Which products are eligible?

Some but not all products may qualify for the tax credit. Let us help you to evaluate the best choice and to determine your tax saving potential.

To download and print the government’s summary of Energy Star products that are eligible for HVAC  credits for homeowners, visit www.energystar.gov/taxcredits.

How do I apply for a tax credit?

For qualified improvements, homeowners may be able to claim tax credits equal to 30 percent of the installed costs (up to $1,500). The new tax credits are retroactive to January 1, 2009 and expire on December 31, 2010. The $1,500 limit is for all improvements made during the two-year term, rather than $1,500 each year.

The tax credit applies as a direct reduction of taxes owed. In the past, IRS has directed taxpayers to use Form 5695 (the Residential Energy Efficient Property Credit). It is expected that the IRS will produce new rules related to the recently enacted stimulus legislation, giving taxpayers further guidance on claiming tax credits. To fully understand how the new tax credit may apply to you and what you can do to obtain one, you should consult with a tax professional for advice on tax preparation, as this tax credit is subject to IRS regulations.