Earning Tax Credits

In 2005, Congress passed an energy bill with provisions to encourage and reward energy-saving household improvements.

Valid for purchases made through 2007, homeowners can apply for tax credits up to $500 for money they spend on energy improvements for their homes. Because this is a tax credit and not a deduction, expenditures can be deducted directly from a consumer's federal income tax bill.

Beyond the tax credit, consumers will continue to save year after year with lower energy bills made possible by the energy-efficient improvements they made.

Click here for guidelines on the new Energy Tax Incentive Act.