Tip for Tax Credit on Residential Energy Improvements
With winter around the corner and energy costs at an all-time high, many American homeowners are considering investing now in a more efficient furnace, water heater, or insulation. If you're among them, you might actually want to wait a few months to do so.
The Energy Policy Act of 2005 grants some generous tax breaks for new equipment placed in your main residence after January 1, 2006 -- 10% of the amount expended on "Qualified Energy Efficiency Improvements" and up to $300 for "Qualified Energy Property" up to a maximum credit limit of $500. See details from the American Council for an Energy-Efficient Economy here.