The energy star tax credit was created as a result of the American recovery and reinvestment act of 2009. With the energy star credit, individuals who installed new energy star products in their home may be eligible for some incredible tax incentives. The energy star credit is only available with certain energy star products that meet specific energy star requirements. There are actually two classifications of energy star tax credits. The first classification is set to expire at the end of 2010 and the second classification is set to expire in 2016.

The first type includes energy star items such as biomass stoves, heating, ventilating and air conditioning systems, insulation, roofs, water heaters, windows, doors, and skylights. These products have an expiration date of December 31, 2010 and are limited to a total credit of $1,500. This means that you can only claim one credit for the total of $1,500 even if you installed multiple energy star products in your home last year. The credit is good for a total of 30% of the cost of your product, not including labor.

The second type of energy star credit is available until December 31, 2016 and has no upper limit. These products include geothermal heat pumps, small wind turbines, and solar energy systems. You can claim this credit, with certain restrictions, for 30% of the total cost. Your total cost does not include the cost of installation.

For more information on the topic of the energy star tax credit, visit the official energy star government website.

Author: Greg Jackson