With the spring-summer remodeling season underway, consumers who are undertaking home improvement projects can look forward not only to lower home energy bills for years to come, but also to lower federal income tax bills for 2007.
Washington, D.C., May 2007 - With the spring-summer remodeling season underway, consumers who are undertaking home improvement projects can look forward not only to lower home energy bills for years to come, but also to lower federal income tax bills for 2007.
Federal income tax credits of up to $500 are available to homeowners who make specific types of energy-efficiency home improvements by December 31, 2007. All the details can be found at www.ase.org/taxcredits - a bilingual English/Spanish website developed by the U.S. Department of Energy (DOE) and the Alliance to Save Energy.
"The energy-efficiency tax credits offer multiple benefits - just like energy efficiency itself," says Assistant Energy Secretary Andy Karsner. "Taxpayers can reduce their tax bills, improve the efficiency of their homes, and reduce their energy costs."
"The average U.S. household spent more than $2,000 last year on home energy costs," notes Alliance President Kateri Callahan. "Taking advantage of the federal energy-efficiency tax credits can help ease those high energy bills."
Home improvement tax credits are available for:
• Insulation and exterior doors, including storm doors: 10 percent of the cost of the product (but not the installation), up to $500. Includes materials to seal air leaks such as caulk, weather stripping, and foam sealants.
• Central air conditioner, heat pump, or water heater: Up to $300 towards the full purchase price, including installation costs.
• Exterior windows, skylights, and storm windows: 10 percent of the total cost, up to $200. All windows with the ENERGY STAR label, the government's symbol for energy efficiency, qualify.
• Pigmented metal roofs: 10 percent of the cost of the product (but not the installation), up to $500 for metal roofs with pigmented coatings that meet ENERGY STAR requirements.
• Furnace or boiler: Up to $150 towards the full purchase price, and/or $50 for an efficient air-circulating fan in a furnace, including installation cost.
The DOE/Alliance tax credit website spells out the stringent efficiency requirements for heating and cooling equipment.
The Alliance to Save Energy is a coalition of prominent business, government, environmental, and consumer leaders who promote the efficient and clean use of energy worldwide to benefit consumers, the environment, economy, and national security.