$18 Billion in Energy Tax Credits
October 3, 2008. President Bush signed into law the Emergency Economic Stabilization Act of 2008 which extended existing tax credits to homeowners and businesses that invest in renewable energy and energy efficient home improvements. Various forms of improvements include solar panels, wind turbines, windows, doors, roofs and insulation. These credits, however, cannot be applied to improvements made in 2008.
Starting in 2009, there is a new tax credit for hybrid electric vehicles. The credit would start at $2,500 and be capped at $7,500. The determining factor of how the credit will be assessed is based on the capacity of the battery system.
The tax credit for solar is for 30% of the cost of the system, up to $2,000. Beginning in 2009, this cap will be removed for photovoltaic systems.