Energy Credits The American Recovery and Reinvestment Act (ARRA) provides numerous tax incentives for individuals to invest in energy-effiecient products: Residential Energy Property Credit:  This credit applies to home improvements such as adding insulation, energy-efficient exterior windows and energy-efficient heating and air conditioning systems. The credit rate has been increased from 2007 to 30 percent of the cost of all qualifying improvements with a maximum credit limit of $1,500 for improvements placed into service in 2009 and 2010. The standards for property qualification have also increased from the previous 2007 credit. Residential Energy Efficient Property Credit: This credit applies to individual taxpayers for items such as solar hot water heaters, geothermal heat pumps, and wind turbines. Plug-In Electric Vehicle Credits: These credits apply for plug-in electric drive motor vehicles placed in service in 2009, plug-in electric vehicles purchased after February 17, 2009 and conversions of vehicles to plug-in electric drive motor vehicles placed in service after February 17, 2009. For information on energy-efficient products, visit the U.S. Department of Energy's Energy Star Website via the following link: www.energystar.gov/index.cfm; not all Energy Star products qualify for the tax incentive.   For additional information, please click on the following links to the IRS website: Energy Incentives for Individuals in the American Recovery and Reinvestment Act: www.irs.gov/newsroom/article/0,,id=206875,00.html