New federal tax credits will lower personal income taxes in 2006 and 2007 when consumers make their homes more energy-efficient and purchasing fuel-efficient vehicles.
Washington, D.C., November 2005 - New information from the Department of Energy (DOE) and the Alliance to Save Energy (www.ase.org/taxcredits) will help consumers reduce their federal income taxes in 2006 and 2007 by making their homes more energy-efficient and purchasing fuel-efficient vehicles. The information reflects provisions in the Energy Policy Act of 2005 and is provided as part of the DOE/Alliance Powerful $avings campaign to help consumers reduce their energy bills and the nation lower its overall energy use.
The Internal Revenue Service has not yet issued specific guidance for consumers on how to claim the income tax credits, but in the meantime the web pages offer comprehensive information, based on the new energy law, to help consumers save money on their energy bills and their federal income taxes. The web pages will be updated on a continuing basis as the IRS makes new details available.
Under the new energy law, consumers can save up to $500 in taxes in 2006 and 2007 for specific energy-efficiency upgrades to existing homes. In addition, consumers - and businesses - can save up to $3,400 on energy-efficient hybrid-electric or diesel vehicles purchased.
The Powerful $avings campaign (www.ase.org/powerfulsavings) provides tips for lowering energy bills at home and on the road. Consumers also can find a wealth of energy- and money-saving tips in DOE's free Energy Savers booklet (www.energysavers.gov), which is available in both English and Spanish versions.