Financial benefits of going green traditionally ranged from reducing utility bills to increasing the value of a home. However, with a more energy efficient conscious government, there is now significant government funding in the form of tax credits.

Emergency Economic Stabilization Act of 2008 - President Bush signed this bill that is widely known as the "bail-out package" for the banking community, but less known for the financial incentives for going green. Under this new bill a wide range of tax credits will be made available to home owners and the building community for making green improvements starting in 2009. Furthermore, it extends tax credits for the purchase of solar systems and fuel cells through 2016.

Home Improvement Tax Credits of up to $500 will be made available for green improvements placed into service from January 1, 2009 through December 31, 2009.

These credits are available for the purchase of home improvement material:

• Window Tax Credits - 10% of cost up to $200 of EnergyStar Labeled Exterior Window, Skylights and IEEC Certified Storm Windows
• Doors Tax Credits - 10% of cost up to $500 of EnergyStar Labeled Exterior Doors and IEEC Certified Storm Doors
• Replacement Roofing Tax - 10% of cost up to $500 of EnergyStar rated Meta or Asphalt roofing
• Insulation - 10% of cost up to $500 of IEEC Certified Insulation
• Central Air Conditioner - $300 for Consortium for Energy Efficiency qualified products. Note not all EnergyStar products qualify for this credit.
• The Air Source Heat Pumps - $300 for Consortium for Energy Efficiency qualified products. Not all EnergyStar products qualify.
• Furnaces and Boilers - $150 for Gas, oil or propane systems that are approved by The Gas Appliance Manufacturer Association.
• Geo-Thermal Heat Pump - 30% of cost up to $2000 for EnergyStar Labeled products
• Electric Heat Pump - $300 for products certified by EnergyStar
• Advanced Main Air Circulating Fan - $50 for fans certified by EnergyStar
• Water Heater - $300 for Gas, Oil or Propane water heaters that are EnergyStar and Whole-Home Tankless.
• BioMass Stove - $300 for EneryStar labeled stoves.

Solar Energy Systems - Tax credits, separate from the $500 home improvement credit, have been available for 30% of the purchase price and installation costs of qualified solar water heating and photovoltaic systems since January 1, 2006. Starting January 1, 2009, the $2000 cap on photovoltaic systems will be removed, but the cap will remain on solar water heaters.

• Solar Water Heater - 30% of cost up to $2,000
• Photovoltaic System - 30% of cost, no cap after January 1, 2009

Small Wind Power Systems that qualify will earn credit of 30% of cost up to $4000.

Fuel Cell Tax Credits are available to homeowners for up to 30% of the costs for purchasing and installing certified fuel cell and microturbine systems. This credit is separate and not limited to the $500 home improvement cap.