Unless Congress acts quickly to extend federal income tax credits worth up to $500 per household, these incentives for homeowners to increase their homes' energy efficiency will expire on December 31.
Washington, D.C., December 2007 - The window is closing for homeowners to take advantage of valuable federal income tax credits for energy-efficiency home improvements, advises the Alliance to Save Energy. Unless Congress acts quickly to extend the tax credits worth up to $500 per household, these federal incentives for homeowners to increase their homes' energy efficiency will expire on December 31.
Consumers are facing heating costs of nearly $1,000 this winter - an 11 percent increase from last year - and have seen overall 2007 home energy costs spiral to $2,100, according to Energy Information Administration data. By installing the qualifying energy-efficiency home improvements before the end of this year, they can cut their 2007 incomes taxes by as much at $500, enjoy lower home energy costs and increased indoor comfort for years to come, and reduce their carbon footprints.
All the details on the tax credits 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.
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.