You only have through December 31, 2010 to purchase energy efficient improvements for your home and qualify for a lucrative tax break. The maximum credit is equal to 30% of the first $5,000 spent on high-efficiency heat pumps, air conditioners, and water heaters, or energy-efficient windows, doors, insulation materials, and certain roofs. You can also claim the credit for certain types of asphalt roofs and for stoves that burn biomass fuel.
Even if you claimed the $500 tax credit a few years back for energy efficient improvements made to your home, you can still claim the full $1,500 tax credit for 2009 and 2010 as long as you make $5,000 worth of qualified energy efficient expenditures during that two year period.
Please note that the new rules did increase the standards for an energy efficient purchase to qualify for this tax credit. Check out the products listed atwww.energystar.gov to see if the energy efficient purchases you made qualify for this tax credit.
For more information about this tax break, download theForm 5695 available at www.irs.gov.