Supplement to “Energy Detectives”
Making energy-efficiency upgrades to your home is not only the smart thing to do, but it can also reduce your taxes. The Energy Policy Act of 2005, the new national energy law that went into effect last August, provides federal tax credits for consumers who make certain updates.
For example, homeowners can take a tax credit of up to $300 for purchasing highly efficient heating, cooling, and water heating equipment.
To qualify, equipment must meet high efficiency standards and include the following:
• Gas, oil and propane furnaces and boilers—up to $150 in tax credits
• Central air conditioning units, including heat pumps—$300
• Water heaters—$300
These tax credits apply for improvements placed in service from January 1, 2006, through December 31, 2007. Consult a tax professional for more detailed advice about qualifying for the credits.
Source: Alliance to Save Energy
To read the Kentucky Living November 2006 feature that goes along with this supplement, click here: Energy Detectives.