Renewable Energy Tax Credits

With the recent Economic Stimulus package passed into law, you can now get tax credits for energy efficient home improvements. This generally includes improvements for energy efficient furnaces, water heaters, solar power, windows, etc. The lifetime cap is currently $1,500, which can reduce the expense of big-ticket items like solar panels or tankless water heaters.

If you are looking at solar power, you have a couple of options depending on how much money you have to spend or how handy you are. Here are some tips:

• Hire a Contractor: There are multiple companies getting into solar power installation. Until recently, it was prohibitively expensive to install and only for the wealthy. Costs have reduced significantly in recent years, and with tax credits it's available to more homeowners than ever. Just like you would for any other large home improvement, do your research, shop around and get multiple estimates.
  
• Do It Yourself: Believe it or not, you can build your own solar panels. There are many inexpensive guides out there and it's easier than you might expect. Many guides also recommend building your own windmill as a power supplement for prolonged cloudy days or added energy. If you make enough power, your electric utility will actually give you a credit on your bill!

You can find a comprehensive list of all the tax advantages here:

http://digits.hrblock.com/taxtalkandblogs/stimulus/stimulusfaqs.php