Tax Smart

On February 17, 2009, President Barack Obama signed the American Recovery and Reinvestment Act of 2009. $20 billion of this economic stimulus legislation will go directly to energy efficiency initiatives. Major components of the designated budget include:

• $3.1 billion in energy efficiency block grants to states conditioned on assurances for regulatory reform and more effective building energy codes
• $3.2 billion in a Energy Efficiency and Conservation Block Grant Program to local governments
• $8.1 billion to improve the energy performance of federal buildings
• $500 million for research, labor exchange and job training projects to prepare workers for careers in energy efficiency and renewable energy industries, and the extension and increase in the amount of the existing homes federal tax credit
• Extends and increases the value of the Existing Homes Tax Credit to 30 percent of cost up to $1,500 for 2009 and 2010 for property meeting certain standards.
• Establishes a new 30 percent investment tax credit for the manufacture of "advanced energy property," including technology for the production of renewable energy, energy storage, energy conservation, efficient transmission and distribution of technology, and carbon capture and sequestration.

View a complete summary of energy efficiency in the economic recovery bill.

Or read the US Department of Energy article on the American Recovery and Reinvestment Act of 2009.

Internal Revenue Code 179D

Allows for tax deductions for certified energy efficient commercial buildings.

Full text of IRC 179D including the updated amplification of the above provision.

Important: Legislation and local laws may have changed since initial posting. Please consult your local government office for the most up-to-date and comprehensive information on IRC 179D and other tax credit legislation.