Plan Now to Take More Tax Credits in 2007

Tabitha Alterman, Mother Earth News

Now that most of us are finished filing our 2006 taxes, it's time to think about more ways to save money on next year's taxes (or get an ever better refund). By upgrading your home's energy efficiency or investing in renewable energy, you can earn income tax credits anywhere from $50 to $2,000.

Looking for an easy, inexpensive home improvement that will continue to save you money as long as you own your home? Add some insulation to your attic--an easy DIY project for one person--and earn a credit for 10 percent of the cost. Replace an exterior door with an Energy Star door for another 10-percent credit. Replace an old appliance with a new, more efficient model for a $300 credit.

Ready to make an even bigger impact on your energy bills? Start with a solar water heater, one of the easiest renewable energy systems to install. Or dream big with a solar-electric system that can supply power to your home. You'll be able to recoup 30 percent of the cost of installing either system, for a credit up to $2,000.

Over the long term, these improvements will save you even more cash as they help lower your utility bills month after month. In case you haven't filed your 2006 taxes yet, don't forget to claim any energy credits for which you already qualify.


Learn More and Save Big
Be sure to save all your receipts, and visit these sites to learn more about available energy efficiency tax credits and how to claim them:
? The Tax Incentives Assistance Project
? IRS Guidelines for Energy Efficiency Tax Credits

Study up on a couple of the easiest energy improvements you can make:
? All About Insulation
? Go Solar for Free Hot Water

Find out what other financial incentives for making energy improvements are available in your area:
? Database of State Incentives for Renewables and Efficiency

When you're ready to start making more energy improvements around the whole house, arm yourself with a thorough resource. At Mother Earth News, we consider The Home Energy Diet by Paul Scheckel to be our home energy improvement bible.

We want to hear from you. Have you been making home energy improvements? Which improvements have paid off the most? Which were the biggest headache to install? Tell us about your successes and failures in our comments section.