Tax credits for energy conservation

As of February 21, 2006, the IRS announced a tax credit for many kinds of updates trhat make your house more efficient.

See the link here: http://www.irs.gov/newsroom/article/0,,id=154657,00.html (opens in a new window)

This includes credits for new energy effiicent windows and doors, and insulation systems. There are also credits for energy-efficient furnaces and hot water heaters, as well as solar panels and fuel cells.

One drawback, however, is that the improvements must be made on the owner’s primary residence property. It won’t encourage landlords to update their rental properties, and it won’t encourage those with seasonal homes to do the same.