Home improvement projects that included adding insulation or replacing windows, water heaters or certain high efficiency heating and cooling equipment, completed in 2007, could be eligible for the Home Improvements Federal Tax Credit. The tax credit, a max of $500, was offered for both 2006 and 2007. To be eligible in 2007, projects had to be completed by December 31, 2007. Homeowners have until April 15, 2008 to claim the credit for 2007. Improvements are restricted to a primary residence. For more information, go to http://www.irs.gov/newsroom/article/0,,id=154657,00.html or request IRS Notice 2006-26.
A $2,000 tax credit for building a new energy efficient home exists through December 31, 2008, but it is restricted to “eligible contractors.” According to EnergyStar.gov, home builders who qualify as eligible contractors can receive the $2,000 tax credit for a new energy efficient home that achieves certain energy savings over the 2004 International Energy Conservation Code (IECC) and supplements. The energy savings must be certified by an energy rater. Manufactured home builders are eligible for a $1,000 tax credit for similar efforts.
Contact your state energy office or local utilities for more information.