Energy Efficiency Tax Credits

(HIT) - The nation's new energy law offers you federal tax credits to make energy-saving improvements to your home, according to the Edison Electric Institute. These tax credits will help you lower your income taxes dollar-for-dollar. Note that tax credits are only available in 2006 and 2007.

Appliances* Tax Credits … High-Efficiency Cooling/Heating Systems $150 if you buy: Furnace or Boiler (gas, propane, or oil). $300 if you buy: Central Air Conditioner Heat Pump Geothermal Heat Pump High-Efficiency Water Heaters $300 if you buy: Fossil Fuel Water Heater (natural gas, oil, or propane). Electric Heat Pump Water Heater Building Envelope (roof, walls, windows, insulation) 10% of purchase price, up to $500 maximum, for making energy-saving improvements such as caulking/weatherstripping, adding insulation, buying efficient windows/doors. The maximum tax credit for window upgrades is $200. Note: These credits, along with the appliance tax credits, are subject to a lifetime tax credit limit of $500. Solar Energy and Fuel Cells 30% of systems cost, up to $2,000, for solar photovoltaic and/or solar thermal system 30% of system cost, up to $1,000/killowat, for fuel cells *Check for qualifying efficiency requirements. Source: Edison Electric Institute (www.eei.org)