| Federal Tax Credits for Renewable Energy Installations
In February 2009, the American Recovery and Reinvestment Act, often referred to as the stimulus package, made a number of changes for federal tax credits for the purchase of renewable energy equipment, building energy efficiency improvements, energy-efficient vehicles, and energy-efficient appliances. These federal tax credits are important because they are deducted dollar-for-dollar from taxes owed to the U.S. Government. 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 (i.e., $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 $1500 maximum.
- The $200 cap on windows has been removed but the requirements for windows has been increased significantly. Not all ENERGY STAR qualified windows will qualify.
A summary of the major incentive provisions may be found at Energystar.gov or the Department of Energy Web sites.
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For information, contact:
Eric Steltzer, Energy Policy Analyst
NH Office of Energy and Planning
4 Chenell Drive
Concord, NH 03301
VOICE (603) 271-2155
FAX (603) 271-2615
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