| Energy Tax Credits Go Into
Effect
The energy efficiency tax credits signed into law August 2005 by
President George W. Bush went into effect on January 1, 2006, and are
available for the purchase and installation of energy efficient
appliances and products, as well as the purchase of fuel-efficient
vehicles such as hybrids. The energy efficiency tax credits will allow consumers to reduce their 2006 tax bills on a dollar-for-dollar basis up to the amount allowed under the law. For example, consumers who purchase the most fuel-efficient vehicles could reduce their tax liability by up to $3,400, while those who install certain products such as energy-efficient windows, insulation, doors, roofs and heating /cooling equipment in the home can receive up to $500 off of their federal tax bills. Specific tax benefits for the home include: --$50 for purchasing an advanced main air-circulating fan --$150 for installing a highly efficient furnace or boiler --$200 for installing energy efficient windows --$300 for purchasing a highly efficient central air conditioner, heat pump or water heater --30 percent, or up to $2,000, for the purchase of solar water-heating equipment (does not apply to equipment used to heat swimming pools or hot tubs) Businesses may be eligible for credits such as: --30 percent tax credit for the installation of qualifying solar equipment on buildings --Business tax credits for companies that build highly energy efficient homes --Credits for companies that manufacture energy-efficient appliances such as dishwashers, clothes washers and refrigerators.
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