2009 Energy Tax Credit, Buyer Be Ware

American Recovery and Reinvestment Act of 2009

The property construction and remodeling small business is within the worst economic times it as ever been in. Builders, subcontractors, suppliers and workers have or are facing bankruptcy. Layoffs inside the building industry are at all time high and not considerably recovery in sight. Businesses are doing about anything they can to survive. Some extremely creative advertising is showing up everyday, encouraging folks to build or remodel. This desperate advertising is being centered on the new American Recovery and Reinvestment Act of 2009.

On February 17, 2009 President Obama signed the new American Recovery and Reinvestment Act of 2009 or referring to new energy tax credits. Lots of have jumped at this to entice men and women to upgrade to new energy efficient items and earn tax credits back. This strategy does provide property owners with some good incentives to upgrade.

President Bush had this energy tax credit in location, which was to end in 2007, but was extended by way of 2008. The new 2009 plan has numerous excellent improvements. Going from a 15% of material rebate in 2007 to a 30% rebate on material in 2009. The new strategy increases the rebate from a $500 cap to a $1500 cap. But this is where the home owner requirements to read the fine print.

Some of these desperate businesses are advertising that you might be able to get new energy efficient goods installed and not need to pay a dime. Now is some instances this may perhaps be true but not with all. Installation isn't covered with numerous of the items.

Installation expenses ARE COVERED for:

• HVAC (Heating, Ventilation and Air Conditioning) systems


• Biomass Stoves


• Water Heaters (which includes solar)


• Solar Panels


• Geothermal Heat Pumps


• Wind Energy Systems


• Fuel Cells

Installation costs aren't covered by the tax credit for:

• Windows


• Doors


• Insulation


• Roofs

Now this is just for existing houses upgrading to energy efficient items that pass the Energy Star rating. This isn't for new house construction. For anyone who is constructing a new house, you could qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters. Builders are eligible for a rebate on new houses which are 50% far more energy efficient than the 2004 IECC.

This tax credit is for all goods placed in service in 2009 & 2010 for most residence improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and windmills which aren't subject to this cap, and are in effect via 2016,

So as you hear these promotions to upgrade your residence or construct a new home, check on Energy Star's website to make sure you will get the credit that is being explained to you. Also remember that this is a rebate on your tax return, so you will be waiting until the following year to obtain it back. Yes these rebates are real and are great to look into, just don't get sucked into the desperation sales that are happen right now.