As ‘Tax Day’ Approaches, U.S. DOE, Alliance to Save Energy Advise Consumers about 2007 Federal Income Tax Credits
As ‘Tax Day’ Approaches, U.S. DOE, Alliance to Save Energy Advise Consumers about 2007 Federal Income Tax Credits For Energy-Efficiency Home Improvements, Hybrid Vehicles
Washington, D.C., April 2, 2007 – As U.S. taxpayers scramble to file their 2006 tax returns, they can ensure “happy returns” next year in the form of federal income tax credits of up to $500 by making certain energy-efficiency home improvements by December 31, 2007. Valuable federal tax credits also are available through December 2010 for purchases of hybrid-electric vehicles.
All the details 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 to Save Energy.
“The energy-efficiency tax credits offer multiple benefits – just like energy efficiency itself,” says Assistant Energy Secretary Andy Karsner. “Taxpayers can reduce their tax bills, improve the efficiency of their homes, and reduce their energy costs.”
On the home (improvement) front, tax credits are available for the following:
• 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.
The DOE/Alliance tax credit website spells out the stringent efficiency requirements for heating and cooling equipment, as well as the current status of the hybrid tax credits, which begin to diminish when an automaker has sold 60,000 qualifying vehicles.
“U.S. consumers spent about $4,500 last year to power their homes and vehicles – about 20 percent more than in 2004 – and it cost them an average of $862 just to heat their homes this winter,” said Alliance President Kateri Callahan. “Taking advantage of the federal energy-efficiency tax credits can help ease those energy bills while also paying the ‘dividend’ of lower income tax bills for 2007.”