On Aug. 8, 2005, the President signed the Energy Tax Act which could provide homeowners with a $500 credit for non-business energy property (a one time credit) and the 30% of cost credit for residential energy efficient property (up to $2000). Not surprising, given their subject matter, both are fairly complex. While the many energy related technicalities related to these credits will hopefully be easily resolved with the help of manufacturersÂ’ certification/labeling, the average person should be aware of this tax saving opportunity.
A homeowner may take advantage of these credits by installing energy efficient insulation, skylights, exterior doors, and pigmented coated metal roofs. For example, you may be eligible for a $50 credit for each advanced main air circulating fan or $300 for qualified energy-efficient property heat pumps, water heaters and central air conditioners.
For additional details please consult your tax advisor.