How the Economic Stimulus Plan Helps Homeowners

The American Recovery and Reinvestment Act of 2009 has helpful provisions for the American homeowner.

On February 17th, 2009, the President signed into law the American Recovery and Reinvestment Act of 2009 and there are great ways for the American homeowner to save money. ConstructionDeal.com helps homeowners find contractors to complete home improvement projects and we have evaluated the benefits of this new plan.

These tax credits are designed to increase demand for green products, create more American jobs, cut greenhouse gas emissions, and give homeowners more disposable income with lower utility bills. Homeowners will be able to save 30%, up to $1,500, on energy efficient windows, doors, appliances, heating systems or alternative energy products if they are installed within the next two years. The installations must be for the homeowner's primary residence.

What Homeowners Will Need To Do

Homeowners will need to keep efficiency certifications (or Energy Star labels) from products they have installed and the receipt for the work from their contractor. The IRS tax form 5695 should be available in late 2009 or early 2010.

Types of Products Covered:

All the home improvement products have energy-efficiency requirements. For example, replacement windows must have a u-factor at 0.30 or below and SHGC at 0.30 or below to earn the tax credit. The type of products eligible for these tax credits include, but are not limited to:

• Replacement Windows & Skylights
• Insulation (excluding Exterior Siding)
• Energy Star Appliances
• Solar Water Heating Systems
• Exterior Doors
• Metal & Asphalt Shingle Roofs
• Central Air Condition
• Heat Pumps, Furnaces & Boilers
• Water Heaters
• Wind Turbines
• Geothermal Heat Pumps
• Solar Photovoltaic Panels

The solar energy panels, solar water heating systems, wind turbines, and the geothermal heat pumps are not limited to $1,500 and are good for 30% of the cost.

How to Find Contractors

If you need help finding service professionals to install these energy-saving systems in your home, you can submit your request to ConstructionDeal.com - at no cost. You'll get quotes from local contractors ready to help improve the value of your home, save you money, and improve your quality of life.