If you have been putting off doing some upgrades to improve the energy efficiency of your home, you better act fast. A credit that was created by the Energy Policy Act of 2005 is set to expire on December 31. The tax credit allows for 10% of the cost of materials for designated projects up to a maximum of $500 and also has credits available for solar power installation:
Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in the home can receive a tax credit of up to $500 beginning in January 2006. The EPACT also provides a credit equal to 30% of qualifying expenditures for purchase for qualified photovoltaic property and for solar water heating property used exclusively for purposes other than heating swimming pools and hot tubs. The credit shall not exceed $2000. Improvements must be installed in or on the taxpayer’s principal residence in the United States. Home improvement tax credits apply for improvements made between January 1, 2006 and December 31, 2007.
For a full list of what is covered by this energy act, check out the Department of Energy’s website…but don’t wait if you were thinking of doing a small project around the house!