Two Convenient Locations:
San Diego Office: (619) 283-7113
Julian Office: (760) 765-0343
Energy Property Incentives for
Individuals and Businesses
Residential Energy Property Credit
Energy efficient improvements – Taxpayers can receive a tax credit of 30% of the cost (up to $5,000) of qualifying improvements to their existing homes for a maximum credit of $1,500 for property placed in service in 2009 and 2010.
Adding insulation, energy efficient exterior windows or heating and air conditioning systems qualify for the credit. The standards of energy efficiency are higher than in prior years. The IRS will issue guidelines that allow manufacturers to certify that products meet the new standards. Homeowners should make sure that certifications for purchases after June 1, 2009 meet the new standards for exterior windows and skylights.
Alternative Energy Equipment - Credits are also available to help individual taxpayers pay for qualified residential alternative energy equipment such as solar hot water heaters, geothermal heat pumps and wind turbines. The new law removes some of the previous limits on these credits and allows a 30% credit on the cost of qualified property.
Plug in Electric Drive Vehicle Credits
Credits for qualified plug-in electric drive vehicles purchased after December 31, 2009 have been modified. The credit ranges from $2,500 to $7,000 depending on battery capacity. To qualify, the vehicles must be newly purchased, have four or more wheels, a gross vehicle weight of 14,000 pounds or less and draw propulsion using a battery with at least four kilowatt hours that can be recharged from an external source of electricity.
An alternative 10% special tax credit (up to $2,500) is available for low speed electric vehicles using a battery with at least four kilowatt hours and two or three wheeled vehicles using a battery with at least 2.5 kilowatt hours purchased after February 17, 2009 and January 1, 2012.
An additional 10% credit for the cost of converting a vehicle to a qualified plug-in electric drive motor vehicle placed in service after February 17, 2009 and before December 31, 2011. The maximum credit if $4000.
Energy Incentives for Businesses
A summary of the Energy incentives for Businesses in the American Recovery and Reinvestment Act can be found on the IRS website at
Julian Office: 4367 Highway 78, Ste. 112, Santa Ysabel, CA 92070 (760) 765-0343 (760) 765-0150 Fax
San Diego Office: (By Appointment Only) 3751 37th St., #2, San Diego, CA 92105 (619) 283-7113 (619) 284-7113 Fax
Correspondence: P.O. Box 1934, Julian, CA 92036 E-mail: rebecca(at)luerscpa.com jan(at)luerscpa.com
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