In 2006, and now in 2007, a person can earn up to a $500 Income Tax Credit for the cost of energy efficient home improvements. The 10% tax credit is for items in your main home: exterior windows, insulation systems, exterior doors and metal roofs that meet the Energy Star requirements. The law also provides for a $50 credit for such things as an eligible main air-circulating fan and a $150 credit for a qualified natural gas, propane or oil furnace or a hot water heater. The maximum credit per tax year is $500, but no more than $200 can come from window expense.
There is also a credit for adding qualified soar panels, solar water heating, or a fuel-cell power plant for the main home. Taxpayers are allowed a credit up to 30% to a maximum of $2000 for these qualified investments. Use Form 5695 for the Residential Energy Efficient Property Credit. Remember, these items must be placed in service before January 1, 2008.
IRS has a list available of Alternative Motor Vehicles , placed in service after 2005, that may qualify for a tax credit.. Also, there is a newer credit for a Qualified Hybrid Motor Vehicle. The credit varies with each one as fuel efficiency is compared with the 2002 models. The full credit amount is $2,600 for the highest qualified vehicles. For more information, check out the web site: www.IRS.gov . The Hybrid Vehicle credit is good through 2010 for passenger cars and light trucks, and 2009 for other vehicles.