On February 17, 2009, President Obama signed The American Recovery and Reinvestment Act of 2009, bringing about the “New Energy Economy” and some amazing new energy tax credits. The economic stimulus package consists of $787 billion dollars in recovery funds to get our economy back on its feet. Among those funds are incredible new green tax credits for simply upgrading your home or office to clean energy alternatives.

When you think about $787 billion, your mind probably starts to boggle, but as an environmentally friendly consumer, you need to know how to get your tax credits. First off, many of the 2008 incentives are still in effect. Those looked like this:

• Purchased a geothermal heat pump, solar water heater, solar panel, fuel cells (receive credit of 30% or up to $2,000)
• Purchased small wind energy systems
(receive credit of 30% or up to $4,000)

In the new economic stimulus package, energy tax credits have progressed from a tiny 10% credit on most clean energy alternatives ~ green products (windows, doors) to a whopping 30% credit. Of course, there is still a limit to what the government will give you for going green, but if you upgrade and purchase a clean energy alternative product, you will receive up to $1,500 in an energy tax credit that is yours to keep.

Here’s the catch. Your home must be the taxable primary residence, and the upgrade must be done between January 1 of 2009 and December 31 of 2010. I guess that’s not much of a catch when you stop to think about it. This includes all energy efficient upgrades, from windows to doors, to roofing and insulation. Air conditioning systems, furnaces, and water heaters all qualify for credit as well.

There are a few products that do not fall into the “up to $1,500” category, and can be credited for exactly 30 percent of the total purchase. These items include:

• Geothermal pumps
• Solar water heaters
• Solar panels
• Fuel cells
• Windmills

Wondering if your expensive install fees are included in the energy credit? Instillation is covered for the above products only, no doors or windows. Biomass stoves and HVAC products are covered as well. To receive your energy tax credit, be sure to have you Manufacturer Certification Statement, which is simply a signed statement from you manufacturer certifying that the product you purchased qualifies for the tax credit. Hint: ask before you buy!

If thinking of purchasing a clean air vehicle this year, you may be eligible to receive an energy tax credit of between $2,500 and $7,500, depending on if you get your car in time. The first 250,000 energy efficient cars will receive the full credit, while those who purchase after that will receive basically whatever’s left. The car credit begins to “phase out” after the first 250,000 are bought.

Home builders and businesses owners can also take advantage of the energy credit by upgrading their offices, or building efficient homes that achieve 50 percent energy savings over the existing standards. Home builders must achieve 50 percent energy savings over the 2004 International Energy Conservation Code (IECC), offices must achieve 50 percent energy savings over the ASHRAE Standard 90.1-2001

Check out all the energy tax credits at www.energystar.gov.