New Warning on Economic Stimulus Scams

The Federal Trade Commission last week issued a new warning on Web sites that advertise their ability to help you get money from the new economic stimulus plan. "Many use deceptive names or images of President Obama and Vice President Biden to suggest they are legitimate. They're not," says Eileen Harrington, Acting Director of the FTC's Bureau of Consumer Protection. "Don't fall for it. If you do, you'll get scammed."

National Public Radio ran a story on Thursday about the increasing number of scams and misinformation associated with the stimulus. The NPR story featured a Ohio woman who had heard that there was government money available to people who weatherized their homes. Kristann Hartley applied online to a Web site uspublicgrantservices.com and less than a week later received a call from a man who claimed to be from the Department of Housing. Hartley became suspicious after the man said she needed to provide a copy of her deed and estimates from contractors and pay an underwriting fee of $385 with a cashier's check.

The truth is there is a tax credit available for energy-efficient home improvements (including weatherizing). The stimulus increased this credit. Tax credits are now available for installing new energy-efficient windows and doors, insulation, roofs and HVAC systems. The credits is will reimburse people for up to 30 percent of their cost up to a limit of $1,500 in 2009 and 2010.

In addition, there are grants for installing geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells in existing homes and in new construction. This credit is available through 2016, but is unclear whether these grants are available to individuals. For more information see section 1603 on page 250 of The American Recovery and Reinvestment Act.

Christina Kielich, an spokeswoman for the Department of Energy, said on Tuesday that these grants are only available to states. She is double checking that information for us.