Earn tax credits for improvements made in 2009, 2010

If you make your home more energy efficient by December 31, 2010, you may be eligible for savings on your federal income taxes.

Understanding Federal tax credits for energy-efficiency improvements

Tax credits on your federal income taxes are available for many energy-efficient products purchased and installed in existing homes between January 1, 2009, and December 31, 2010, because of the tax stimulus legislation. The table below shows some products that may qualify for tax credits for a homeowner, the estimated tax credit and the maximum credit.

Product	Estimated Tax Credit	Max. Credit
Exterior windows	30% (materials cost only)	$1,500
Skylights	30% (materials cost only)	$1,500
Exterior doors	30% (materials cost only)	$1,500
Metal roofs	30% (materials cost only)	$1,500
Insulation	30% (materials cost only)	$1,500
Central air-conditioning	30% (materials & labor)	$1,500
Heat pump	30% (materials & labor)	$1,500
Ground-source heat pump	30% (materials & labor)	N/A*
Water heater	30% (materials & labor)	$1,500
Advanced main air circulating fan	$50 (materials & labor)	$50
Solar water heating	30% (materials & labor)	N/A*

* Not subject to cap if installed after December 31, 2008

More good news

Besides tax credits from the federal government, you also may be eligible for rebates on many of the above products from Ripley Power & Light. If you buy an energy-efficient electric water heater, for example, we’ll give you $50. If you are switching from gas to electric water heating, we’ll bump that rebate up to $100. Switch from gas heat to an electric heat pump system from one of our approved contractors, and we’ll give you $200. Plus, we’ll finance most energy-efficiency improvements with payments on your monthly electric bill.

Tax credits. Rebates. Low-interest financing. Lower utility bills. 2010 is the perfect year to become energy efficient.

Explaining tax credits
To figure a tax credit, you calculate the amount of tax you would owe just as you always do, then you subtract the amount of the credit from what you owe. Thus the tax credit is a direct reduction in the amount of tax you pay.

For details on qualifying products above, visit www.energystar.com or www.energyright.com.

Your tax professional also can advise you about the amount of tax credit you can expect for your home improvements.