If you’ve been thinking of making energy efficiency improvements to your home, 2006 and 2007 are the years to do it, according to the August/September issue of Mother Earth News. That’s because the federal government is offering tax credits for many types of energy-saving measures purchased before 2008 (although Congress is considering expanding the program until 2015). A tax credit is the best kind of tax incentive because it reduces the amount of taxes you owe dollar for dollar. If you owe $1,000 in federal taxes and you have a $500 tax credit, your taxes are reduced to $500.
Some examples of the tax credits you can claim:
•solar electricity or water heating — 30% of the cost up to $2,000;
•storm doors, insulation and pigmented metal roofs — 10% of the cost, up to $500 each;
•windows and skylights — 10% up to $200;
•efficient furnaces and boilers — $150;
•water heaters, electric and ground source heat pumps and central air conditioning — $300.
    The improvements must meet certain efficiency standards such as Energy Star certification. For more information and for help claiming these tax credits:  www.energytaxincentives.org; to read the complete article, visit www.motherearthnews.com