Take a Cool Tax Break
Did you know that you can get a tax credit for replacing those old, leaky windows in your house? Or for installing central air conditioning? Cool, huh?
The Energy Policy Act of 2005 (EPACT), signed by President Bush on August 8, 2005, offers taxpayers specific tax credits for improvements in homes that increase energy efficiency if the improvements are made between January 1, 2006 and December 31, 2007.
This includes installation of energy efficient windows, doors, skylights, insulation and even central AC. There is also a tax credit for adding solar panels, solar water heating equipment, or a fuel cell power plant to their homes. Sorry, they don’t qualify if they are used to heat your swimming pool or hot tub.
Most of the credits are a percentage of the cost, but there are caps. For instance, for qualifying exterior windows the credit is 10% of the cost, not to exceed $200. Check out the specific credits and the exceptions to the credits at the Department of Energy and the IRS websites.
