• The tax credit for energy-efficiency upgrades to existing homes is extended to 2010.
• The value of the tax credit for qualified equipment is increased from $500 to $1,500.
• Homeowners can claim up to 30 percent of the cost of qualified energy-efficiency investments, up to the new maximum of $1,500. That means if a homeowner spent $5,000 of qualified energy-efficiency upgrades for an existing home, they would be eligible for the maximum credit of $1,500.
• Homeowners can claim multiple purchases up to the tax credit limit.
• Only certain qualifying equipment is eligible for the tax credit; see the Energy Star web site for details (www.energystar.gov/index.cfm?c=products.pr_tax_credits).
Renewable-energy tax credits for existing homes
• Consumers who install renewable-energy systems at their homes can receive a 30 percent tax credit for systems placed in service before Dec. 31, 2016; the previous tax credit cap no longer applies.
• Eligible systems include solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems.
Energy-efficiency tax credits for new homes
The U.S. government provides tax incentives to home builders to encourage the construction of energy-efficient homes. Homeowners who purchase a new energy-efficient home don’t receive these tax credits directly, but will benefit from a permanent reduction in energy expenses, increased resale value, and improved comfort and indoor air quality compared with a standard home. If you are shopping for a new home, you may want to investigate whether local builders are taking advantage of these programs. Also, if you are having a home built, you may want to consult with your designer and contractor to build a “greener” home that achieves significant energy savings. Home builder tax credits expire on Dec. 31, 2009.