The $787 billion federal economic stimulus bill has several tax provisions affecting energy efficiency improvements in placed in service in 2009 and 2010. 

The tax credit for qualifying products has been increased from 10% to 30% up to a maximum allowed credit of $1,500.  This would allow a home owner to spend up to $5,000 on improved insulation, windows, duct work, etc and take the 30% tax credit on their 2009 or 2010 return.

The cap on the 30% tax credit for switching to renewable energy has been removed.  If you install a solar panel array at a cost of $15,000, your credit is now $4,500 instead of the previous cap of $2,000.

Remember, financing for many of these improvements is available and spreads your cost over the years of savings.  There are also programs through Austin Energy that provide incentives for many of the same projects.

For more information on the federal stimulus go to http://www.greeneconomyinitiative.com/news/185/ARTICLE/1449/2009-02-17.html

For more information on the Austin Enerty programs go to http://www.austinenergy.com/Energy%20Efficiency/index.htm