Tax Credits, Rebates and the Stimulus Bill
ARRA --The American Reinvestment and Recovery Act

As a result of ARRA several new tax credits are available for Americans who wish to invest in renewable energy and/or weatherization for their homes.  Please note: These are tax credits, not tax deductions.  A tax credit is deducted from your actual tax NOT from your income.

Colorado receives the largest annual Weatherization Assistance grant from the Department of Energy to help low income families save money by making their homes more energy efficient.

Recovery Act Spending for the State of Colorado
Weatherization $79,531,213
State Energy Program $49,222,000
Energy Efficiency & Conservation Block Grant Program $42,618,700
Total $171,371,913

New Weatherization Assistance Tax Credit for 2009 tax year.
This credit applies to energy efficiency improvements in the building envelope of existing homes made after January 1, 2009.
The stimulus plan provides a homeowner efficiency tax credit of 30 percent of the cost for new energy upgrades, up to $1,500.
Qualifying Building Envelope Improvements
Owners of existing homes receive a tax credit on their 2009 taxes worth 30% of the cost of upgrading the efficiency of the building's envelope. Installation (labor) costs are not included. The following improvements are eligible for the tax credit:
* Insulation materials and systems designed to reduce a home's heat loss or gain
* Exterior doors and windows (including skylights) and
* Pigmented metal roofs designed to reduce heat gain, and asphalt roofs with appropriate cooling granules.
Poudre Valley REA Weatherization Rebates
Poudre Valley REA and the Governor's Energy Office offer direct cash rebates of 20%, up to $600, to PVREA members who wish to upgrade the insulation in their homes through the Insulate Colorado Program.  This is in addition to any Tax Incentives. This program is for insulation only and does not cover windows. Click here for more information:  Insulate Colorado

Weatherization Assistance Program for Low Income Families
As a result of the stimulus package, DOE's Weatherization Assistance Program is expanding with a goal of weatherizing one million homes per year. In the past, only households that earned up to 150 percent of the national poverty level were eligible to participate. The stimulus bill extends eligibility to those with incomes below 200 percent of the national poverty level. For a family of four, that's an income limit of $44,100. Program participants may receive an energy audit, safety checks on combustible appliances, insulation, new furnace, new refrigerator, duct and air sealing, CFL light bulbs, and energy counseling. The process to weatherize a home through the program usually takes two days with an average cost of $4,000 per unit. Since some homes have different needs, the stimulus bill allows up to $6,500 to be spent on each home.
This program is administered in Boulder and Larimer Counties by Longs Peak Energy Conservation, not by the federal government Department of Energy or PVREA.
If you think you qualify for this assistance program for low-income home owners call 1-800-200-9006 or click the following link for more information http://www.bouldercounty.org/CS/ho/weatherization/index.htm
Longs Peak Weatherization Assistance Application Form (pdf)
In Weld County contact Northeast Colorado Association of Local Governments 970-351-7772.

Residential Energy Efficiency Tax Credit
This credit applies to the purchase of high-efficiency heating, cooling and water-heating equipment. Efficiency improvements or equipment must serve a dwelling in the United States that is owned and used by the taxpayer as a primary residence. The maximum amount of homeowner credit for all improvements combined is $1,500 for equipment purchased during the two-year period of 2009 and 2010.
Qualifying Heating, Cooling and Water-Heating Equipment
Taxpayers who purchase qualified residential energy-efficient property are eligible for a tax credit worth 30% of the system cost, including labor costs. The credit may also be applied to labor costs for assembly and original installation of eligible property. The following types of equipment are eligible:
* Electric heat pump water heaters
* Electric heat pumps
* Central air conditioners
Geothermal heat pumps
* There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service in 2008.
* Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.
* The geothermal heat pump must meet federal Energy Star program requirements in effect at the time the installation is completed.
* The home served by the system does not have to be the taxpayer’s principal residence.
Poudre Valley REA Heating Rebates
Poudre Valley REA and our wholesale power supplier, Tri-State G&T, offer direct cash rebates up to $1,000 to PVREA members who wish to install efficient heating equipment in their homes.  This is in addition to any Tax Incentives.
Click here for more information:  Heating Rebates

Renewable Energy Tax Credits
A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is on a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for onsite preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below.

Solar-electric property
* There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service before January 1, 2009.
* Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.
* The home served by the system does not have to be the taxpayer’s principal residence.

Small wind-energy property
* There is no maximum credit for systems placed in service after 2008. The maximum credit is $500 per half kilowatt, not to exceed $4,000, for systems placed in service in 2008.
* Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.
* The home served by the system does not have to be the taxpayer’s principal residence.

Poudre Valley REA Renewable Energy Rebates
Poudre Valley REA and the Governor's Energy Office offer direct cash rebates up to $9,000 to PVREA members who wish to install solar PV or wind generation. This is in addition to any Tax Incentives. Click here for more information:  PVREA Renewable Energy Rebates

Additional Information

These are some helpful links that contain much more information regarding tax credits and other programs available through the state and federal government.

http://energytaxincentives.org/consumers/

http://www.irs.gov/newsroom/article/0,,id=206869,00.html

Governor's Energy Office (Colorado)

EnergyStar

DSIRE

2008 IRS Form 5695 & Instructions: Residential Energy Credits (pdf)