Shhhh!! There is a not-so-new secret going around town: the tax credits on home energy improvements have been extended through 2008! While the larger credits are given for electricity-producing systems (wind turbines/solar), there are credits given for smaller home improvements such as window replacement, insulation and skylights to name a few.
According to The National Association of Realtors, “The law increased the investment credit for solar from $2,000 to $7,500 for a buyer who spends $25,000 to install solar panels on his roof.” That spells a significant savings for the homeowner, and improve the marketability of ones home when it comes time to sell.
The chart below, provided by Danielle Blake, gives an outline of the credits.
As always, it is best to check the irs.gov website or contact your tax accountant to get the most out of this years tax credits.