Last December, Congress voted to extend tax credits for energy efficient home improvements to the end of this year. It's unknown whether the credits will be continued into 2012...so if you're thinking of a new heating or air conditioning system you should make the installation before the end of 2011.

Six points to keep in mind:

•1)  The maximum credit you can claim for most home improvements is $500. (For the exception, see point #6.)

The most common improvements that generally qualify are heating, ventilating and air conditioning systems; roofs; water heater; windows; doors and insulation.

•2)  This is a lifetime maximum. So if you previously claimed $500, you can't do so again.

•3)  The tax credit does not apply to the property but rather to you, the taxpayer. So if you claimed $500 in a previous year on a different piece of property, you can't take a credit for an improvement on another piece of property.

•4)  The credit applies only to your primary residence.

•5)  Many but not all Energy Star products qualify. (Energy Star products meet guidelines established by several government agencies.) For example, an Energy Star refrigerator does not qualify, nor does an Energy Star room air conditioner. However, they might qualify for a state rebate. To find out go to: www.energysavers.gov.

•6)  Major improvements will give you a larger credit - up to 30% of the cost. These include fuel cells, wind energy systems, geothermal heat pumps and solar systems.

$TIP: If you made a qualified improvement in 2009 or 2010 and you neglected to take the credit, simply amend your tax return.

Be sure to keep your receipt and ask the manufacturer for a letter stating that your purchase qualifies for the credit.

For additional information about the tax credit and as well as a list of eligible home improvements go to: www.energystar.gov.

           - Nancy Dunnan: NDunnan@aol.com