On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are:

• The maximum Geothermal credit is 30% of complete product and installation costs!

• The tax credits that were for a specific dollar amount, have been converted to 30% of the cost.

• The maximum HVAC credit has been raised from $500 to $1500

• The tax credits that were previously effective for 2009, have been extended to 2010 as well.

So...what is a "tax credit"? A tax credit is generally more valuable than a tax deduction or tax allowance of the same magnitude because a tax credit reduces tax directly, while a deduction or allowance only reduces taxable income and so the reduction in tax is only a fraction (the marginal tax rate) of the deduction of allowance.

The standards for the systems are high, but the credits help to offset the higher costs for the systems, which in the long-term will save the consumer a significant amount of money. For more information, please visit www.energystar.gov

The New PECO Natural Gas Energy Efficiency REBATE

Using energy more efficiently reduces your monthly energy bills and carbon footprint - all without sacrificing comfort. PECO's new Natural Gas Energy Efficiency Rebate Program helps you save money.

To be eligible for the rebates, a homeowner (or business) must repalce their current natural gas heating system or water heater - or convert from another fuel source - and install ENERGY STAR quality, natural gas equipment between January 1st, 2009 and December 31, 2009. All PECO natural gas customers can take advantage of rebates for installing qualified natural gas equipment.

If all program requirements are met, generally, a rebate check will be processed withing 4-6 weeks after mailing in the claim form, unless the equipment is selected for verification which may take additional time.

NOTE: Residences within Philadelphia County receive their natural gas service from PGW and therfore are not eligible for PECO natural gas rebates.

The Electrical Association of Philadelphia's Spring 2009 Regate Program

The dates for the Spring 2009 program are as follows:

• Contracts may not be signed before Sunday, February 1, 2009

• Contracts must be signed by Friday, May 15, 2009.

• Systems must be installed by Sunday, May 31, 2009.

• Contractor paperwork must be submitted on or by Friday, June 12, 2009.

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