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The federal energy tax credit plans


Energy Tax Credits are what the US government and from different states grant to encourage the investment in renewable clean energy in order to:

  • gradually replace the energy produced by burning fossils and
  • invest energy conservation home improvements

    The IRS provides energy tax incentives. The reasons for this generosity reside in the following solar energy goals:

  • Reduce the carbon footprint
  • Mitigate the adverse effects of global warming
  • Minimize the nation dependency on imported oil from politically unstable regions
  • Generating more jobs in the US related to clean energy

    Restrict to residential property (or home owners in other words) there are following energy tax incentives

    For Solar Heating and Solar Electric Panels

  • For new (as of January 2009) home solar power systems, the tax credit is 30% of the investment, no upper limit.
  • For new (as of January 2009) solar water heater the tax credit is 30% of the investment, no limit.

    For other investments related to improving residential energy efficiency (e.g. better furnaces, building insulation, doors and windows insulation, a biomass furnace), the tax credit is 30% limited to 1,500$ in 2009 and 2010 combined.

    You may correctly assume that there are some constraints and conditions for getting the tax credits so you should consult your tax consultant before.

    On a descending scale of glory, people who admires cutting edge technologies will grade electricity first, solar water heating second and saving money at home third. However, homeowners are grading these options differently. They strive to save money faster and to improve our planet condition.



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