Looking for reasons beyond energy conservation and lower utility bills to make your home more efficient? In June 2005, Congress passed the Energy Policy Act as part of its energy bill, which offered federal tax credits (deductions affect your taxable income, tax credits reduce the tax itself) for energy efficiency in both the residential and commercial sectors. This was really good news for homeowners. Unfortunately, the act expired at the end of 2007 and has yet to be renewed by Congress. If you made home improvements before December 31, 2007, you will still be able to claim them on this year's taxes. But for next year's, the situation isn't yet settled. An extension of the Energy Policy Act passed in the House in February; however, a new bill that would increase the tax credits for energy efficiency has been introduced to the House and Senate but has yet to be voted on.

Home Improvement
Homeowners may claim up to $500 for insulation, replacement windows, water heaters, and specific heating and cooling systems installed in 2007, but not yet for improvements made in 2008 (see the Energy Star website). Since these improvement credits may be reinstated (and will provide you energy savings anyways), here is a rundown with standards they must meet in parentheses:

*2004 International Energy Conservation Code

**Annual Fuel Utilization Efficiency