New Tax Credits for Energy Efficiency

Posted by on July 7, 2006

During 2006, individuals can make energy-conscious purchases that will provide tax benefits when filling out their tax returns next year. The new law provides tax credits for making your principal residence, which must be in the United States, more energy efficient and for buying certain energy efficient items.

A recent tax law change provides a tax credit to improve the energy efficiency of existing homes. The law provides a 10 percent credit for buying qualified energy efficiency improvements. To qualify, a component must meet or exceed the criteria established by the 2000 International Energy Conservation Code (including supplements) and must be installed in the taxpayer?s main home in the United States. For more information go to <a href="http://www.irs.gov">http://www.irs.gov</a> and keyword search Energy Policy Act of 2005.