Take Advantage of Expiring Energy Tax Credits

Photo: Lanica Klein / Istock

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Reeling at the thought of paying your heating bills this winter? If you are among the many New Englanders who rely on liquid heating oil, you're facing record high prices. If you stay warm with natural gas or electricity, you still don't have it much easier, particularly given the depressed housing market and stagnation in actual consumer wealth.

While it may be tempting to start secretly cheering on global warming, Al Gore be damned, there are better options. You don't have to beat yourself up too much for not taking that job offer in Phoenix.

Although Uncle Sam is still horribly addicted to fossil fuels (and Simon Slade isn't the only one who thinks we need big changes), at least big government has heard your pain. The 2005 Energy Policy Act includes a woefully under appreciated, little known program offering a tax credit to people making specific energy-efficient upgrades to their homes, as reported by today's Chicago Tribune. That way, you'll save a considerable amount of money on your utilities over time, as well as result in lowered energy use. That means cleaner air and less greenhouse gases.

What's included? Everything from adding insulation to weatherproofing your doors and windows and upgrading to energy-efficient appliances. But beware, these valuable tax credits are set to expire in December, so you must act quickly. The improvements must be completed by the end of the calendar year to qualify. When you file your taxes, fill out IRS form 5695.

What's covered? The following items, per the Alliance to Save Energy:

• Furnace and boiler: credit up to $150
  With specific efficiency benchmarks, qualify for a rebate of up to $150 on a new system. Learn details here.
• Central a/c, heat pump or water heater: credit up to $300
  Products must meet stringent energy-efficiency standards.
• Exterior windows, skylights and storm windows: credit up to $200
  Earn 10 percent of total cost, not to exceed $200. Windows must meet the standards of the 2001 or 2004 International Energy Conservation Code.
• Exterior doors: credit up to $500
  Get 10 percent off storm doors, seals and weatherstripping designed to limit air infiltration, up to $500, not including installation. Must meet the 2001 or 2004 International Energy Conservation Code standards for your region.
• Pigmented roofs: credit up to $500
  Get 10 percent off roofing that reflects heat away from your home, reducing cooling loads when it's hot. Products must meet the EPA's Energy Star guidelines.
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