Good Morning Gentle Readers,
Just wanted to briefly mention a couple of things about the Energy Credits you've hear about.
Residential Energy Credit. You may claim a lifetime credit of $500 ($200 for windows) for installation of certain energy-efficient insulation materials, exterior windows and doors, electric heat pumps, and central air conditioning. The credit is 10 percent of the cost of qualifying materials. Effective for 2006 and 2007 only.
Credit for Installation of Energy-Efficient Property. You may claim a $2,000 credit for the installation of solar water heating equipment, photovoltaic, or fuel cell equipment in your primary residence or a second home. The credit is 30 percent of the cost of the equipment.
If you use it to heat your pool or spa, no credit is allowed. The government prefers that you continue heating your pool using expensive, non-renewable energy sources that emit greenhouse gases. Effective for 2006 and 2007 only.
Credit for Purchase of New Energy-efficient Vehicles. Beginning in 2006, there is a dollar-for-dollar credit available for the purchase of hybrid vehicles. It’s a nice break but is severely limited and at this time Toyota and Lexus hybrids no longer qualify for the credit because they have sold enough units to meet the cap of 60,000 vehicles sold after 01-01-06. If you bought a hybrid in 2006 you should discuss this with us or with your own tax pro.