Home Energy Tax Credits For 2007

Home Energy Tax Credits For 2007

Cut you tax bill by $2000 or more and help save the environment. No, you do not have to buy a pair of sandals and move to the commune to do your part

The US Federal government is offering some nice incentives in the form of tax credits for saving energy and going green.

What's in it for you? * A healthy tax break. * on-going savings on your home energy costs. * Satisfaction that you are helping our precious earth.

This is a tax credit, not a tax deduction! This means that if you owe $7000 in federal income tax this year and have $2000 in tax credits then your tax bill becomes $5000.

Here are some of the home energy improvements that qualify for a tax credit:

A water heater with an energy factor of .80 will get you a $300 tax credit

A 95% efficient furnace or boiler (natural gas, propane, oil) nets you a $150 tax credit

Insulating your house to an R-value suitable for your climate and you will recieve a tax credit of 10% of the cost up to $500.

Installing energy star rated exterior doors (storm doors also qualify) and you will recieve a tax credit of 10% of the cost up to $500.

Installing a solar water heater that supplies 50% of your water heating needs (pools and hot tubs excluded) and you will recieve a tax credit of 30% of the cost up to $2000.

Installing solar electricity for your home and you will recieve a tax credit of 30% of the cost up to $2000.

This is a really great time to update your house with systems that will not only save you on your taxes but will also increase the value of your home and save you money on your heating and cooling bills. Most important of all, you will be contributing to a cause that is good for the environment.

For more home energy tax credits and details on these go to irs.gov. Keep it green.