Congress has provided a number of credits over the past few years with the stated goal of having more energy-efficient appliances of components. This will be an overview of those currently available.

Individual taxpayers are allowed a personal income tax credit in 2009 and 2010 (called the "nonbusiness property credit") equal to 30% of the sum of (1) amount paid or incurred by the taxpapyer during the year for qualified energy efficiency improvements, and (2) amount of residential energy property expenditures paid or incurred by the taxpayer during the tax year. No credit is allowed to the extent that an excluded energy conservation subsidy (one provided by a public utility to a customer to buy or install an energy conservation measure)was provided for the expenditure.

The dwelling unit must be owned by the taxpayer and used as his principal residence, and must be met at the time of installation (i.e., credit available only for existing homes).

The aggregate amount of nonbusiness energy credits allowed for tax years beginning in 2009 and 2010 cannot exceed $ 1500. This is a non-refundable credit, meaning it can only be used to reduce your tax liability to zero.

Th types of purchases that can qualify include insulation material or systems, exterior windows, skylights, ro doors, metal or asphalt roofs. The key thing to know is that each different type of product type and category has a specified minimum criteria. The seller's representation that an item is 'energy efficient' is not satisfactory; in order to be qualifying, specific values must be met, and the seller/manufacturer should be able to provide the documentation you need. (If they cannot, I recommend you shop elsewhere). A complete list of the tax credits and criteria is available at www.energystar.gov/taxcredits.

Similar but different are the Residential Energy Efficent Property Credits, currently available thru 2016, which provide credits for qualifying (key word again) solar electric property, solar water heating property, small wind energy property, greothermal heat pump property, fuel cell property, Property must be originally placed in service by the taxpayer (must be new, cannot be used).

The rules are complex and very detailed (at the energystar website noted above). If you are investing your money in these types of improvements/replacements for your home, take the time to insure that they qualify for the tax credit.