The new energy tax credit is designed to help homeowners get a bigger return on some of the home improvements that help the home be more energy efficient. These improvements are to help homeowners and they are meant to be Eco friendly as well as a way to lower heating and cooling bills throughout the year. Not all home improvements qualify for the tax credit and you have to get your improvements done before the deadline.http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

This newest tax credit gives homeowners a better return than a tax deduction of the same amount spent, because the energy tax credit will give you a full return of 30% of the amount spent. There is an ENERGY STAR tax credit, some windows, doors and skylights that are eligible for a rebate. These tax credits and rebates are allowed for only the year of purchase.http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

The Energy Policy Act of 2005 was amended in 2008 and the American Recovery and Reinvestment Act of 2009 was signed and made into a law by President Obama. This new energy tax credit gave consumers and homeowners even more tax credits than the original law.http://www.energy.gov/print/taxbreaks.htm

When qualifying appliances and other products are purchased from January 1, 2009 to December 31, 2010 may be eligible to receive a tax credit for 30% of the purchasing price. That is like getting products for your home for 30% off the original price.http://www.energystar.gov/index.cfm?c=windows_doors.pr_taxcredits

When the law was first introduced in 1995, the credits that were allowed were not as many as there are with this amendment by President Obama. This is in part because of the environmental impact of appliances and vehicles that are not energy efficient, this new energy tax credit is in place so that consumers will make purchases that does less harm to the environment.http://www.epa.gov/oust/fedlaws/publ_109-058.pdf

In order for a home improvement, appliance or other purchase to qualify for the energy tax credit, the money must be spent for a home that is the primary residence. The residence must be one that is not under construction. You may qualify for up to 30% of the cost of home repairs and other home improvement purchases made during 2009 and 2010.http://www.energystar.gov/index.cfm?c=tax_credits.tx_index 

These improvements of your main residence qualify for the tax credit, up to $1,500.00 and cannot be claimed year after year, they can be claimed only once.

• Asphalt or Metal Roof
• Biomass Stoves
• Insulation
• Storm Doors
• Storm Windows
• Sliding Glass Doors
• Water Heatershttp://www.energystar.gov/index.cfm?c=tax_credits.tx_index 

You can get a tax credit with no refund limit, for these repairs to a vacation home or other homes that you own. These improvements can be claimed year after year, as long as the energy tax credit is in effect.

• Solar Powered Water Heater
• Solar Panels
• Geothermal Heat Pumps
• Wind Energy Systemshttp://www.energystar.gov/index.cfm?c=tax_credits.tx_index 

Fuel cells also qualify for the tax credit on homes that are under construction, excluding vacation homes.http://www.energystar.gov/index.cfm?c=tax_credits.tx_index 

Disclaimer: The content in this page is not a substitute for professional financial advice. Please contact a finance professional before using the information presented here.