The Recovery Act invested millions in new projects that are improving our infrastructue, repairing homes, and much more. But it also provided millions in direct benefits for families, students, businesses, investors, and more including more than $288 million in various forms of tax relief. Guidance on how to access each of those benefits is below.
Tax Credits for Home Energy-Efficient Improvements
For 2009 and 2010, the Recovery Act increases this credit from 10 percent to 30 percent of qualified energy efficiency upgrades to existing homes. Caps on individual upgrades are removed, and an overall cap of $1,500 applies.
Repeal Subsidized Energy Financing Limitation on the Investment Tax Credit
This investment tax credit is limited when energy investments are partially financed by other governmental subsidies or bonds, but the Recovery Act repeals any such limits.
Removal of Dollar Limitations on Certain Energy Credits
Previously, individuals have been allowed to claim a thirty percent (30%) tax credit for qualified solar water heating property (capped at $2,000), qualified small wind energy property (capped at $500 per kilowatt of capacity, up to $4,000), and qualified geothermal heat pumps (capped at $2,000). The Recovery Act repeals the individual dollar caps, so each of these properties is eligible for an uncapped thirty percent (30%) credit.
