Homeowners can tap tax credits for energy efficiency

As hot summer days approach, Missourians may be looking for ways to cut energy costs, and U.S. Sen. Claire McCaskill, D-Mo., wants people to know about tax credits that can help homeowners save on energy-efficient home improvements.

Made available through the American Reinvestment and Recovery act, the tax credit program allows taxpayers to receive credits for 30 percent of home improvement costs, up to $1,500, for energy-efficient changes made this year and in 2010.

According to a news release, the tax credits can be used for adding insulation, natural gas, propane or oil water heaters, aswell as energy-efficient exterior windows, air conditioning systems, doors and skylights.

The 30 percent credit with no cap also is available for investments in solar water heaters, geothermal heat pumps and small wind turbines.

In all cases, however, home improvement products must meet energy-efficiency standards as defined by the Internal Revenue Service.

"Amid hard economic times, home improvement projects often fall by the wayside," McCaskill said in the release. "This measure will help families pay for improvements, create jobs, and by making homes more energy efficient, will help Missourians save on heating and cooling bills in the long run."