Headed out to Home Depot to replace some windows? Hold on! If you can wait until January 1st, Uncle Sam might just be able to help you with tax credits, via the Energy Tax Incentives Act of 2005. The Act was created to provide homeowners with tax credits for certain improvements to a residence that make a property more energy efficient. And with the winter month’s right around the corner and the expected jump in energy prices, many individuals may be considering a few alternatives to help take the chill out of the air while lowering their energy bill.So here’s the scoop on several of the eligible improvements, and the tax credits associated with each. All new windows that are purchased and installed will provide a homeowner with a maximum tax credit of $200. Doors, skylights, insulation, and metal roofs coated with heat-reducing pigments provide a credit of 10% of the cost up to a maximum of $500. The largest credit allows up to 30% of the cost or a maximum of a $2,000 credit for the equipment and installation of solar water heating, so long as it is not used for swimming pools or hot tubs.
And while the tax credits are welcomed, the return on investment for making these improvements could save hundreds if not thousands of dollars in energy bills, as well as boost the value of a property. To best determine the improvements that will give you the most bang for your buck start by visiting the Home Energy Saver website, simply by visit Home Energy Website. Want to know what other homeowners in your area are paying for their energy bills? Simply enter the zip code of your city and a chart will be displayed with the average energy bill for a regular home and a home that is energy efficient (specific to your area). Additionally, take a few minutes, enter all the data that is relevant to your specific home and within a few moments a calculation will be performed that will provide you with a list of specific recommendations for energy efficiency improvements that can be made to lower your energy bill.