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:
- 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. - 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.