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Last Chance for Homeowners to Reduce Federal Income Taxes With Energy-Efficiency Home Improvements

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Date: 
December 3, 2007

Washington, D.C., December 2007 – The window is closing for homeowners to take advantage of valuable federal income tax credits for energy-efficiency home improvements, advises the Alliance to Save Energy. Unless Congress acts quickly to extend the tax credits worth up to $500 per household, these federal incentives for homeowners to increase their homes’ energy efficiency will expire on December 31.

Consumers are facing heating costs of nearly $1,000 this winter – an 11 percent increase from last year – and have seen overall 2007 home energy costs spiral to $2,100, according to Energy Information Administration data. By installing the qualifying energy-efficiency home improvements before the end of this year, they can cut their 2007 incomes taxes by as much at $500, enjoy lower home energy costs and increased indoor comfort for years to come, and reduce their carbon footprints.

Home improvement tax credits are available for:

  • Insulation and exterior doors, including storm doors: 10 percent of the cost of the product (but not the installation), up to $500. Includes materials to seal air leaks such as caulk, weather stripping, and foam sealants.
  • Central air conditioner, heat pump, or water heater: Up to $300 towards the full purchase price, including installation costs.
  • Exterior windows, skylights, and storm windows: 10 percent of the total cost, up to $200. All windows with the ENERGY STAR label, the government’s symbol for energy efficiency, qualify.
  • Pigmented metal roofs: 10 percent of the cost of the product (but not the installation), up to $500 for metal roofs with pigmented coatings that meet ENERGY STAR requirements.
  • Furnace or boiler: Up to $150 towards the full purchase price, and/or $50 for an efficient air-circulating fan in a furnace, including installation cost.

All the details on the tax credits can be found at www.ase.org/taxcredits – a bilingual English/Spanish website developed by the U.S. Department of Energy (DOE) and the Alliance.