Federal Tax Credits

Tax Credit Information

The opportunities for tax credits are tied to the re-insulation of residential homes generated by the American Recovery & Reinvestment Act (also known as the $787 billion Stimulus Bill) passed in February 2009.

Two key components of this newly passed legislation include the following:

  1. Department of Energy’s (DOE’s) Weatherization Assistance Program (WAP)
    – The WAP was founded in 1976 to provide weatherization services to low income residential households every year. Historically, the federal government has allocated about $250 million dollars annually to this program over the past 30 years. With one stroke of the pen on February 17, 2009, the Feds allocated 20 times the normal annual amount.  This amount equates to more than $5 billion to be spent on weatherization between July 1, 2009 and December 31, 2010.  Some of the largest components of the WAP include re-insulation of attics and exterior sidewall re-insulation.
  2. Thirty percent (30%) Federal Tax Credit (up to $1,500)
    – The maximum tax credit in 2006 and 2007 was 10% of the material purchase price (up to $500). Now the maximum tax credit is 30% of the material purchase price (up to $1,500) for qualified energy efficiency improvements and qualified energy property.