By Caroline Wigmore
Staff Writer

It’s a good time to do a few jobs around the house, such as installing insulation or other home improvements that will improve energy efficiency, because of a tax credit of up to $1,500.

The idea behind the tax credit is to promote energy efficiency, and a wide range of home improvements will qualify, but the work must be dated between Jan. 1 2009, and Dec. 31, 2010, and does not apply to work done in 2008.

Updates such as the installation of exterior windows and skylights, storm windows, wood stoves, storm doors, exterior doors, geothermal heat pumps, water heaters (gas, oil, or propane), biomass stoves, metal or asphalt roofs, insulation, central air-conditioning, solar energy systems such as solar water heating, small wind energy systems, and fuel cells will qualify..

The tax credit given for these updates is 10 to 30 percent higher than in previous years, and the maximum credit has been raised from $500 to $1,500. However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.

An example of how the tax credit works would be if a person were to install insulation in their homes, they could apply for a tax credit of 30 percent of the cost of the insulation, up to $1,500. Like all of the updates, there are requirements for the product being installed, and in the case of insulation, the insulation must be expected to last for at least five years or have a two year warranty.

For more information about the specifics of the tax credit as it applies to different home improvements, visit Energy Star’s web site at energystar.gov. The information will be listed under “tax credits for energy efficiency.”