This week, we bring you news that might actually have you thanking the IRS! This year, homeowners can take advantage of IRS tax credits by upgrading their homes using qualified energy-efficient products placed into service by December 31, 2007.
Federal tax credits for energy efficiency range from up to $2000 for solar panels and solar hot water heaters to up to $500 for many other types of home improvements, including extra insulation, replacement windows, and certain high-efficiency heating and cooling equipment (see chart).
A tax credit can provide significant savings by reducing the amount of income tax you have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the tax itself. And with the money you'll be saving on your energy bill, the financial incentives for greening your home really start adding up.
Federal tax credits for energy efficiency range from up to $2000 for solar panels and solar hot water heaters to up to $500 for many other types of home improvements, including extra insulation, replacement windows, and certain high-efficiency heating and cooling equipment (see chart).
A tax credit can provide significant savings by reducing the amount of income tax you have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the tax itself. And with the money you'll be saving on your energy bill, the financial incentives for greening your home really start adding up.
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