A ten-percent credit for energy efficient improvements, such as insulation, exterior windows, skylights, exterior doors, and pigment-coated metal roofs. (The maximum credit allowed for windows is limited to $200.)

 

A credit for energy property expenditures in the following amounts: $50 for each advanced main air circulating fan; $150 for each qualified natural gas, propane, or oil furnace, or hot water boiler; and $300 for qualified energy efficient property, such as heat pumps, water heaters, and central air conditioners that meet certain requirements.

When making home improvements, look for the Energy Star label and ask the manufacturer if the items qualify. Items such as appliances and siding do not qualify for the credit.

Also, the expenditures must be incurred for items installed in the home that you are currently occupying as your principal residence. If you are in the process of building a new home, you are not entitled to the credit, even though the items you install may be certified as energy efficient.