There has been some new changes to the IRS Tax Credit for Energy Efficiency program as part of the recent stimulus bill.  Credits have increased from 10% to 30% and many of the dollar limits have been increased or removed.  The limits in place are for a two-year period of 2009-2010.   

Geothermal systems had the credit limit removed and a 30% tax credit is available.  The tax credit is retroactive to Jan. 1, 2008 and that specific program continues through Dec. 31, 2016!  Also note that Energy Star rated products and homes do not automatically qualify for this tax credit.  In some cases the product requirements for the tax credit are stricter than Energy Star requirements.

Some specific changes that may be of particular interest to you are:

          Home improvements – includes windows, doors, insulation, roofing, HVAC, and water heaters.  A 30% of the cost total tax credit is allowed.  Note that the maximum allowed amount of all these credits combined is now $1,500.  Except, geothermal has no tax credit maximum. 

          Solar/wind energy – A 30% credit is allowed for solar water heating, photovoltaics and small wind systems.  There is no cap indicated.

          Home builder tax credit – A $2,000 tax credit for home builders is unchanged. 

          Commercial buildings – A tax deduction of up to $1.80 per square foot is unchanged.

  Be sure to check out the Energy Star website for more details about this program.  The website has an excellent overview of all the federal tax credits for energy efficiency.  It is at http://www.energystar.gov/index.cfm?c=products.pr_tax_credits.

Ask your tax advisor for eligibility.