Harness the wind or sun to generate some of your own power.
The Energy Policy Act of 2005 has offered more than $14 billion in tax incentives for businesses and individuals who improve energy production and efficiency. Among them are several tax credits for builders and homeowners who make energy efficiency improvements to the home. While credits for improvements to existing homes ended in 2007, new homeowners can still take advantage of the following tax credits through the end of 2008:
- 30 percent of the cost for installing photovoltaic systems to provide electricity to the home, up to a $2,000 maximum tax credit.
- 10 percent of the cost for creating energy-efficient building envelopes up to a $500 maximum lifetime credit – this may include insulation that reduces heat loss or gain, upgrading thermostats and installing metal roofs with coatings that reduce heat gain.
- Up to $200 lifetime credit for newly installed energy efficient exterior windows.
- Up to a $300 lifetime credit for qualifying energy efficient heat pumps, air conditioners and water heaters.
- Up to $200 for energy efficient home appliances.
Check with your state’s Department of Energy for state or local credits.