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Home
Improvements

Up to $500

Windows

$200

Doors

10% of Cost

Roofs

10% of Cost

Insulation

10% of Cost

Fans

$50

Furnaces

$150

Water Heaters

$150

Geo-Thermal
Heat Pump

30% of Cost
/ $2,000

Solar
Energy

Extended
to 2016

Wind
Energy

New
Credits*

Hybrid
Vehicles

$2,500 -
$7,500

IRS
Guidelines

IRS
Form 5695

The Economic Stability Act of 2008 provides for Federal
Income Tax Credits up to $500 for home improvements
and 10% of the amount paid for improvements such as
qualified Energy Star appliances.

DSIRE Residential Renewable Energy Tax Credit

Tax Credit FAQsThe Economic Stabilization Act of 2008
(H.R. 1424) includes the long-awaited extension of the
solar investment tax credit.
Not only does H.R. 1424 improve the federal solar tax
credit from a flat $2000 to 30% of total system and
installation costs, it also extends the tax incentive for the
next 8 years.
But it gets better: H.R. 1424 extends tax incentives to
utility companies and commercial installations.
This means that the majority of business and residential
investments will benefit from a 30% discount paid for by
the government! We expect a substantial increase in the
number of solar and wind power orders for residential and
commercial projects. If you have been considering solar
power as a solution to your energy needs, YOU MUST
HURRY! We are sure to experience a rush on solar panels
and supplies could become limited from now until well
into 2012.
The law took effect on January 1, 2009 and will continue
until December 31, 2016.

Highlights of the Federal Tax Credit Program

Extends for the next 8 years a 30% tax credit for residential
and commercial solar installations
Eliminates the flat $2,000 cap for residential solar electric
installations,replacing it with a 30% tax credit effective for
qualified renewable energy systems installed after
December 31, 2008.
Eliminates the prohibition on utilities from benefiting from
the credit
Allows Alternative Minimum Tax (AMT) filers, both
businesses and individuals, to take the credit
Authorizes $800 million for clean energy bonds for
renewable energy generating facilities, including solar
This is the legislation and the incentive many have been
waiting for! START PLANNING NOW FOR 2009 AND
ORDER EARLY!

More on the Solar Investment Tax Credit

On October 3, 2008, the House of Representatives passed
the Emergency Economic Stabilization Act (EESA) of
2008, which includes an 8-year extension of the solar
investment tax credit (ITC) and provides other critical
incentives to the renewable energy marketplace.
Effective January 1, 2009, the EESA was signed into law
by President Bush 3 hours after House passage, finally
breathing life into what was thought to have been a lost
cause as the ITC was about to expire.
Not only does this new law extend the ITC, it also provides
additional provisions that will combine for $18 billion in
renewable energy tax credits. Those provisions include
credits for solar, wind, and several other clean-energy
industries in the United States.
The EESA removes the $2000 limit on the tax credit for
residential systems. Now, both commercial and residential
photovoltaic systems will be eligible for a 30% tax credit.
The new law also contains a suspension of utility
exemptions so that electric utility companys can also
benifit from the ITC.
"It has been a long time coming, but we have finally
achieved victory on the ITC," said Rhone Resch, president
of the Solar Energy Industries Association. "It took seven
votes in the House and 10 votes in the Senate, but in the
end, Congress came through."
According to SunWize, maufacturer of solar panels and
solar power system components, EEAS represents the
potential for "rapid growth in the industry as well as a
significant increase in the affordability and financial return
of solar electricity for homeowners. The same force that
fueled the dramatic growth of the commercial solar market
will now be directed towards residential customers.
Needless to say, there is going to be a boom in residential
solar in 2009 and beyond."
By passing this bill," according to Suntech America
president Roger Efird,"Congress has finally given the solar
energy industry the �policy certainty that will attract
investment, expand manufacturing and lower the cost of
solar energy to consumers,Efird said in a statement. This
will allow companies like mine to move forward with
expansion plans to serve the growing US market.
The solar industry is the greatest beneficiary of this
legislation. The tax credits for solar initiatives are good for
the next 8 years. Additionally, the $2,000 tax credit limit
for residential solar systems being lifted means that
homeowners can get a 30% tax credit on the solar panels
they install starting next year. And now utilities can also
take advantage of the tax-advantages. This new legislation
will allow the solar marketplace in the U.S. to continue its
strong growth and attract high levels of investment.