STIMULUS CAN SAVE YOU SERIOUS MONEY

The massive $787 billion economic stimulus recently signed has some pretty rockin’ deals for those looking to make energy efficient upgrades to their home this year. I spent a couple minutes breaking down the issues and will simplify them as best I can, so here goes!

The stimulus has increased the size of incentives to make them more lucrative to homeowners. What used to be tax credits worth 10% of an upgrade cost with a max at $500 has increased three fold to 30% of upgrade cost and $1500 cap. This means if you spend $800 on an efficient water heater, $1000 on insulation, and $2000 for new windows, you can take $1140 off your federal tax bill!

On site renewable energy also receives the same 30% treatment, which is a generous improvement over previous credits. A $24,000 investment in solar panels will reap you a $7200 tax credit now, making it a much more feasible investment for those toying with renewables.