I heard that the 2009 stimulus increases credits for energy-efficient home improvements. True or false?
True. The new law increases energy property credits from 10% to 30%, for property improvements placed into service after Dec. 31, 2008 and before Jan. 1, 2011. Also, the lifetime maximum cap on the credit was increased from $500 to $1,500. Here’s an example of how to calculate your credit: if you buy a $7,000 high-efficiency heat pump, your credit is $1,500 (the lesser of (1) 30% x $7,000, or (2) $1,500). If you buy a $1,000 high-efficiency furnace, (it was on sale!), your credit is $300, the lesser of (1) 30% x $1,000, or (2) $1,500.
