American Recovery and Reinvestment Act of 2009 (The Stimulus Package)

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Good news on the energy-efficiency front.  With the ARRA now passed and ready to roll, homeowners now qualify for up to $1,500 in tax credits for energy efficiency home improvement projects including:

  • Insulation
  • Windows with U-values less than or equal to 0.30
  • Gas/propane furnaces with greater than or equal to 95% AFUE
  • Gas/propane boilers with greater than or equal to 90% AFUE
  • Oil furnaces/boilers with greater than or equal to 90% AFUE
  • Water heaters with an energy factor greater than or equal to 0.82.

And the cap on the 30% credit for solar thermal/solar hot water has been lifted.

These credits apply for projects in 2009 and 2010.

With a massive increase in the Weatherization assistance program—about 6-fold to $5 Billion over two years—insulation services will also be in big demand.

 

Homeowners can beat the rush, take advantage and the tax credits, and start saving immediately by scheduling improvements NOW.  Insualtion, heating and cooling equipment, water heaters, the right windows, and solar systems, qualify provided you make the right choices.  (GreenHomes’ Advisors can point you in the right direction).  Energy efficiency projects are something that make sense sooner rather than later.

 

Thanks,
Mike

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7 Responses to “American Recovery and Reinvestment Act of 2009 (The Stimulus Package)”

  1. bruce thomas Says:

    Any clarifications re insulation stimulus package is appreciated

    Such as how is the money administered and are there forms that need filling out

    Is there a procedure for qualifying insulation contractors?

  2. greenhomesamerica Says:

    We’re still waiting on the final information–but that won’t be available until the IRS publishes its forms and instructions on the tax credit. I would expect than within the ext couple of months.

    Regarding the low-income, Weatherization assistance, those decisions are made at the state and local levels, so there are likely to be 50 or more different answers.

    Regarding insulation contractors: For homeowners, make sure the contractor looks at the whole house–any insulation should include good air-sealing and combustion safety testing at a minimum. See http://www.greenhomesamerica.com for suggestions on what to look for. If your question is how can insulation contractors participate in the Weatherization program–you’ll have to contact your local agency for their specific requirements.

    Thanks,
    Mike

  3. Eric Kunkel Says:

    Is the ARRA act retroactive to 1/1/09? I have a few customers that I want to check to see if they qualify for the $1500 tax credit prior to this month; i.e. customers who we installed equipment for in January and February 2009.

    Thanks! Eric

    • greenhomesamerica Says:

      The language reads “must be ‘placed in service’ from January 1, 2009 through December 31, 2010”. So it would appear, yes.

      Thanks,
      Mike

  4. Kris Says:

    For insulation is the 30% credit for the cost of the material or the material and the contractors cost?

    • greenhomesamerica Says:

      The ARRA language is kind of murky on this, and we probably won’t know until the IRS publishes its from. My read is that it will be material cost only.

      -M

    • greenhomesamerica Says:

      The guidance has come down. For insulation and windows, its material only. For HVAC, it’s the full installed cost. Doesn’t make much sense, but then I don’t get to make the rules!

      -Mike

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