Energy efficiency incentives for upgrades to existing homes are now available for 2009 and 2010. These tax incentives have been enhanced and extended through the American Recovery and Reinvestment Tax Act of 2009. The financial cap for these incentives, which cover existing home envelope improvements, as well as heating, cooling and water heating equipment, is $1,500. These incentives are calculated at 30 percent of the product cost, up to the $1,500 cap.
Eligible building envelope improvements for this financial incentive include: installing Energy Star-rated windows; increasing insulation levels in the roof, floor or walls; and replacing an existing furnace, air conditioner or heat pump with a high-efficiency model.
On-site renewables (solar photovoltaic and hot water systems, small wind systems and geothermal heat pumps) are also eligible for tax incentives worth 30 percent of the total cost, without a cap. These incentives are available for both new and existing construction. Incentives for plug-in electric vehicles and plug-in conversion kits are also included.
Additional incentives may be available from utilities and local municipalities.