Really cold. And yes, as a former Southerner, I have to say it’s getting a little old. It’s not supposed to go above the 30s/40s all week, with 20s in the evenings in Philadelphia. Brr.
We’re coping by hibernating in the house as much as possible. Only, I’ll confess, our home is not as energy efficient as we’d like. That’s what happens when you buy old houses. Ours is a Victorian, which dates back over 100 years. It needs some energy updating – which means we’re in luck as the IRS just announced some tax incentives for energy improvements.
For the entirety of 2006 and 2007, the law provides a 10% credit for buying qualified energy efficiency improvements. Such improvements include insulation systems that reduce heat loss/gain; exterior windows (including skylights); exterior doors; and metal roofs that meet applicable Energy Star requirements. The components of the improvements must meet or exceed the criteria established by the 2000 International Energy Conservation Code (including supplements) and must be installed in your main home in the United States.
And that’s not all. The law also provides a credit for costs relating to residential energy property expenses. These items and the applicable credits are $50 for each advanced main air circulating fan; $150 for each qualified natural gas, propane, or oil furnace or hot water heater; and $300 for each item of qualified energy-efficient property.
The maximum credit for all taxable years is $500 – no more than $200 of the credit can be attributable to expenses for windows.
The new law also makes tax credits available to those who use alternative means of energy efficiency. This includes qualified solar panels, solar water heating equipment, or a fuel cell power plant. Taxpayers are allowed one credit equal to 30% of the cost of the solar panel up to a maximum credit of $2,000, and another equivalent credit for the cost of a solar water heating system (though no part of either system can be used to heat a pool or hot tub – sorry guys). Taxpayers are also allowed a 30% tax credit for the purchase of qualified fuel cell power plants. The credit may not exceed $500 for each .5 kilowatt of capacity.
