Along with the enormous Wall Street bailout passed by Congress and signed by President Bush came a handful of tax breaks to “middle America”, including energy tax rebate or credits for certain activities that display a disposition toward energy efficiency.

Tax credits for home improvements that substantially enhance the energy efficiency of a house, i.e. windows, doors, roofs, insulation, HVAC, non-solar water heaters, etc. were created. In part, the hope is that responsible homeowners that may be putting off decisions to make improvements because of economic hardship, would consider making improvements that could provide costs savings in the long haul, by offering a tax incentive now.

Like many issues under the tax laws, however, timing is everything. These credits will be available for expenditures made in 2009, but not in 2008. If you made similar improvements in 2007, but failed to take the credit that was then available – the law permits you to amend your return and take them now.

Tax credits for solar energy systems and fuel cells were extended under the new law through 2016. Also, new energy tax credits were created for wind energy systems and plug-in hybrid electric vehicles. Builders of new energy efficient homes will now qualify for a credit and the deduction granted to owners and designers of energy efficient commercial buildings were also extended in the legislation.

The United States Department of Energy and the Environmental Protection Agency each have developed and provide charts and other information for homeowners, taxpayers and preparers that show all of the tax rebates that may be available for you in 2008 and beyond.

If you have recently made an energy efficient purchase or improvement you may find the tools at TurboTax Online helpful in determining the credit you may be eligible for. TurboTax offers free tax calculators and software to help you maximize your tax return.

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