Tax Credits for Green Living

If you have been meaning to invest in energy-efficient upgrades to your home, 2009 may just be the year to do it.
 
Tennessee resident Edward Murray told the Kingsport Times-News that he and his wife are already enjoying the benefits of replacing all of the windows in their 1930s-era house.
 
"The house feels tighter already, and we expect our energy costs to drop at least 25 percent in this house," he said.
 
Meanwhile, the $787 billion stimulus package signed by President Obama earlier this month included a significant expansion of environmental tax credits for homeowners.
 
The credit available for energy-efficient improvements for 2009-10 has been increased from 10 percent of the total cost to 30 percent, up to a maximum of $1,500 for most modifications.
 
That means that on your 2009 taxes you can be partially reimbursed for doing something that will also end up saving you money in the long run.
 
Eligible changes include installing insulation, as well as purchasing energy-efficient versions of furnaces, air conditioners or water heaters. You can also apply the cost of replacing your current doors and windows with energy-saving versions.
 
Although the Murrays say their upgrades were not made in anticipation of the tax credit, they acknowledge that "it will still be nice to get."
 
If you are unsure about how your home may benefit, you can arrange for an energy audit from a trained professional. Some utilities also offer this service free of charge.