How has the new Stimulus bill affected the tax credits for energy efficient home improvements?

On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits.

This Act extended the tax credits that were previously effective for 2009 to 2010 as well as raised the tax credit from 10% to 30%. While the maximum credit has been raised from $500 to $1500 for the two years (2009–2010), some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum. For existing homes only tax credits are available at 30% of the cost, up to $1,500 total, in 2009 & 2010 for windows and doors, insulation, roofs, HVAC, non-solar water heaters and biomass stoves. Also for existing homes and new constructions, there is a tax credit available at 30% of the cost with no upper limit through 2016 for geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells.

Detailed information regarding The American Recovery and Reinvestment Act of 2009 can be obtained from Energy Star Web site http://www.energystar.gov.

Source: The Energy Star, March 3, 2009