I bought new energy star appliances this past summer when I renovated. Does anyone know if I get tax credits for them?

$500 maximum credit? Yeah, that's going to make me want to spend many thousands of dollars.

Pretty much any one of those items would max out the credit.

If you're going to do it anyway then sure, take the credit. I can't see a mad dash of people trying to get this done just for the credit though. Needs to be higher.

@Juncti: Needs to be higher.
Exactly, no need for increased fuel efficiency standards, give me such a huge tax break that I'd be a fool not to be a new efficient car (or windows or appliances).

it's $500 max for certain categories, generally the ones that are a straight up dollar figure. Things like solar panels are outside of that, including the car. The solar panels one is particularly nice... 30% tax credit, no cap.

@Juncti:

Is it $500 total, or $500 from each category? If it's the latter, then it would be worth it.

I'm switching from electric water heat to an on-demand propane heater. Cost with installation is $2000. New England Propane Group is giving me a $300 rebate. The feds are giving me $300 Tax credit. I'll also save about $30/month on my utilities. And the heater should last twice as long as a typical tank heater, so there's another $500+ in savings over the life of the unit. All this is being paid for by some extra cash I got as part of a mortgage refi that is saving me $25,000 over the life of the loan. Between the refi and the reduced electric bill, I'm looking at an extra $300 in my pocket every month!

Awesome! That brings the energy savings 'break-even point' for new windows on my house down to 86 years!

Doesn't The Energy Improvement and Extension Act of 2008 cover much of the same ground, and also cover 2008 installations?

@backbroken: That's funny. It will bring the break-even on my geothermal heat pump down to 4 or 5 years, even less if propane prices spike again. I'm actually paying less to repay the loan than I used to pay for propane...

@Juncti: States often have tax credits, rebates, or benefits too, as well as outright grants (my state will pay a percentage of some residential solar roofing projects). For example, in my state, if you make an energy-efficient improvement to the house like a new A/C unit, solar panels on the roof, a wind turbine, etc., it CANNOT be reflected in your property taxes no matter how much it raises the value of the house. And there's huge, huge state credits on a lot of the same things the feds credit. It's worthwhile, if you're considering undertaking one of these projects, to check your state as well as the feds.

Keep in mind that "green" construction in newer homes can add as nuch as 20% to the price.. an increase that takes FOREVER to make up in energy savings... And tax credits are simply other Americans subsidizing your home improvement choices - not very fair to poor people who may not be able to afford new appliances or windows...

Also, check with your power company. Some of them do have programs to give you rebates for buying more energy efficient appliances.

@backbroken: That depends. If you're replacing 30 year-old crappy windows that act more like FANS than windows with new energy-star-super-insulated windows, you will break even in just a few years with thems. But if you replace 5 year old pretty good windows with new really good windows, well, you're dumb.

ech, we just spent somewhere in the ballpark of $13k to put in 2 brand-new hvac units. (october 08)

@aaron8301: I still disagree. It would cost about $8000 to completely replace my windows. My entire gas and electric bill is only about $2500/yr. I find that people vastly overestimate the amount of savings they get from new windows/appliances.