Tax Treatment of Energy Saving Improvements

If you are planning to make energy saving improvements to your home and you do so before the end of 2009, you can get a tax credit on your 2009 return. The following are some of the highlights:
10% credit up to $200 on window/skylight/storm window replacements
10% credit up to $500 for exterior doors and storm doors
10% credit up to $500 for installing insulation
$300 for >14 SEER HVAC replacement
$150 for >95 AFUE boiler/furnace replacment
Even if you purchase multiple products you can only get a maximum of $1,500 over the 2-year period (2009 & 2010). Basically you can spend up to $5,000 during this 2 year period on a single or multiple products, and get 30% or $1,500 (30% of $5,000 = $1,500) back as a tax credit. If you get the entire $1,500 credit in 2009, then you can't get anything additional in 2010.