The 2009 economic stimulus legislation signed into law on February 17, commonly referred to as the American Recovery and Reinvestment Act of 2009 or ARRA, includes several provisions modifying and expanding the scope of previous energy-efficiency and renewable energy incentives.
- Energy-efficiency incentives for upgrades to existing homes have been extended, and are now available for 2009 and 2010.
- The financial cap for these incentives, which cover home envelope improvements as well as heating, cooling and water heating equipment, has increased to $500 to $1,500.
- Lower caps, such as the $200 cap on new windows, have been abolished. The existing home incentives are now calculated at 30 percent of the cost of the installation, up to the $1,500 cap. In some cases, incentives include both equipment and labor. Some incentives only apply to the equipment purchase.
- Standards for equipment eligibility have changed.
- On-site renewables (including geothermal heat pumps) are now eligible for a tax incentive worth 30 percent of the total cost, without a cap.
- There are new incentives for plug-in electric vehicles and plug-in conversion kits.