As we take time now to gather receipts and information for our 2008 income tax returns we are often not aware of all the income tax credits that we may be allowed. Did you know that as homeowners, we are allowed an additional tax credit for improving the energy efficiency of our homes?

Under this tax law, homeowners are provided a 10% credit for purchasing energy efficient improvements for your existing main place of residence in the United States. In order to be eligible for this tax credit, the items purchased have to meet specific criteria as set forth by the 2000 Energy Conservation Code.

 The following items are eligible: 

• Insulation systems that reduce heat loss/gain
• Exterior windows (including skylights)
• Exterior doors
• Metal roofs (meeting applicable Energy Star requirements)

 Tax credits are also offered to taxpayers for expenses to the home that qualifies as a residential energy property. A residential energy property is also determined by meeting specific requirements as set forth by the Secretary of The Treasury.

 Eligible expenses include the following:

•  $50 for each advanced main air circulating fan
• $150 for each qualified natural gas, propane, or oil furnace or hot water boiler
• $300 for each item of qualified energy efficient property.

Additional credits can be taken for the following:

• Qualified solar panels
• Qualified solar water heating equipment
• Qualified fuel cell power plant

For more detailed information on Energy Credits for Homeowners, including maximum allowable credits, visit the IRS website.