Do I Qualify for Economic Stimulus Funds?

Economic stimulus – popular buzzwords these days, but how does it apply to me or my business?  How has the new Stimulus bill affected the tax credits for energy efficient home improvements?  Are there funds available and how do I find out if I qualify?  Is there a tax credit for new homes?

These are questions we all are asking as we hear of billions of dollars being earmarked for stimulus packages.  The New York Times put together a helpful summary highlighting the funds available for individuals here.  Tax cuts and credits for business are detailed here.

One area we have been especially interested in are the credits, rebates and stimulus offered for energy or “going green” projects. The significant changes to the energy efficiency tax credits. 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 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 $1,500 maximum.
• The $200 cap on windows has been removed, but the requirements for windows have been increased significantly. Not all ENERGY STAR qualified windows will qualify.

 Details for stimulus funds available for energy related projects can be found here and includes information on funds such as:

• Grants to cities, counties and states to increase energy efficiency -  $6.3 billion
• Increase financing for home weatherization program  - $5.0 billion
• Increase energy efficiency in federal buildings  - $4.5 billion
• Repair and modernize public housing units  - $4.0 billion
• Increase tax credits for residential energy efficiency improvements  - $2.0 billion
• Incentive for alternative vehicle  - $2.0 billion;
• Expand tax incentives for residential renewable energy  -  $268 million

Additional specific information can be found on the US Department of Energy’s website - whose tag line I love -- The quality of our environment is everyone's responsibility!

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