Tax credit tips for consumers

The federal government has enacted tax breaks for certain energy-efficient home improvements, as long as they meet the criteria:n Must be "placed in service" from Jan. 1, 2009, through Dec. 31, 2010

* Must be for taxpayer's principal residence, except for geothermal heat pumps, solar water heaters solar panels and small wind energy systems (where second homes qualify)

* $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 and 2010 for most home improvements, except for geothermal heat pumps, solar water heaters, solar panels, fuel cells and small wind energy systems which are not subject to this cap, and are in effect through 2016.

* Must have a Manufacturer Certification Statement

* Save receipts and the Manufacturer Certification Statement

* Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010). Use IRS Tax Form 5695 (2009 version); it will be available late 2009 or early 2010

* If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC or nonsolar water heaters.

SOURCE: Energy Star website