WASHINGTON, D.C. -- Homeowners who winterize their homes this fall could reap bigger rewards than just saving on their heating bills.
The American Recovery and Reinvestment Act enacted earlier this year, was expanded to include two home energy tax credits: the non-business energy property credit and the residential energy efficient property credit.
This credit equals 30 percent of what a homeowner spends on eligible energy-saving improvements, up to a maximum tax credit of $1,500 for the combined 2009 and 2010 tax years.
If homeowners spend as little as $5,000 before the end of the year on eligible energy-saving improvements, they can save as much as $1,500 on his or her 2009 federal income tax return.
The IRS cautions that the manufacturer's certification is different from the Department of Energy's Energy Star label, and not all Energy Star labeled products qualify for the tax credits. The IRS says actual tax savings will vary.
