In case you’ve forgotten, the Energy Policy Act of 2005 offered tax credits to Americans for improving their homes with all sorts of energy saving and fuel efficient home upgrades. There are a lot of details about what counts and what doesn’t, but generally you could get tax credit for home improvements in 2007 like upgrading to new energy efficient windows, doors, roofing and even adding insulation. You could also get credit for installing a new high-efficiency furnace, air conditioning unit, sump pump, geo-thermal heat pump or water heater. You could even get tax credits for some more uncommon upgrades such as installing solar heating and electricity panels on your home or using fuel cells.

You can read about all the Energy Policy Act details at the Energy Star website which provides more detailed information and even the appropriate tax forms to fill out.

I’ve taken advantage of this over the last several years as we’ve slowly replaced all the windows in our house and upgraded our 20 year old furnace to something that is much more fuel efficient. We’ve had some warm winters for the past couple years, so I haven’t really been able to compare my bills from one cold winter to the next, but I have to admit it’s been great being able to open a window without having to prop them up with scrap pieces of wood.

Unfortunately, all the final home improvement tax credits covered in the Energy Policy Act of 2005 expired on December 31, 2007 and Congress has yet to extend them.

[tags]home improvement, income taxes, energy star[/tags]