Saving energy is always great for the environment and helps reduce costs. Now saving energy may also get you tax credit. The American Recovery and Reinvestment Act of 2009 offers individuals incentives for making their homes more energy efficient. For individuals with existing homes, tax credits of up to 30% on an energy improvement may be received with a cap of $1500. The credit applies to improvements made during 2009 and 2010 and must be made to a principal residence. Geothermal heat pumps, solar water heaters, solar panels, fuel cells and small wind energy systems are not subject to the cap or principal residence requirements. What Products Qualify? Insulation that meets 2009 IECC and amendments when it is used primarily as insulation qualifies for tax credit. For example, insulated siding does not qualify. Exterior windows and skylights with a U factor <= 0.30 and SHGC <= 0.30 are included. The ratings are usually listed with the product or are easily available from the vendor. Storm windows in combination with the exterior window over which they are installed are also available for tax credit of 30% of their value up to $1500. The windows must have a U factor and SHGC of 0.30 or below and meet the IECC. Exterior doors with a U factor and SHGC of less than 0.30 are included on the list. Storm doors in combination with a wooden door over which it is installed with the U factor and SHGC of 0.30 or below that meets the IETF CEC qualify. When it comes to roofing, all ENERGY STAR qualified metal and reflective asphalt shingles not only save energy but earn tax credit as well. There are a wide variety of HVAC products and systems included in the list of products eligible to receive tax credit. Central air conditioning split and package systems, air source heat pumps split and package systems, natural gas or propane furnaces, oil furnaces, gas, propane, or oil hot water boilers and advanced main air circulating fans are all included in the American Recovery and Reinvestment Act of 2009 tax credit program. Gas, oil, and propane water heaters with energy factors of greater than or equal to 0.82 or a thermal efficiency of at least 90% will bring you tax advantages. Electric heat pump water heaters with the same criteria, as ENERGY STAR and an energy factor of greater than or equal to 2.0 are included on the list of energy efficient tax credits. A biomass stove which burns biomass fuel to heat a home or heat water with a thermal efficiency rating of at least 75% qualifies for tax credits. Energy tax credits are available up to 30% of the cost, with no upper limit through 2016 for existing homes and new construction for a geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells. Specific details on the qualifications for all the products and systems are available at www.energystar.gov/taxcredits. “The American Recovery and Reinvestment Act Energy Tax Credits are environmentally friendly and also homeowner friendly,” says Rosemary Scardina, CEO of the Lehigh Valley Association of REALTORS®. “Homeowners are enjoying the savings that energy efficiency provides and will benefit from the improvements when they go to sell their home. Homebuyers today are actively seeking energy efficient homes.” This article is provided courtesy of the members of the Lehigh Valley Association of REALTORS®. Visit us at www.lehighvalleyarea.com and check out our open houses at www.lehighvalleyopenhouses.biz