Tax credits available for energy-efficient home improvements

Homeowners making improvements to their houses to save money on energy bills can take advantage of tax credits that will save even more. When President Obama signed into law the American Recovery and Reinvestment Act of 2009, also known as the "stimulus bill," the act extended credits to homeowners who made improvements for energy efficiency.

The improvements must be "placed in service," or ready and available for use, from January 2009 through Dec. 31, 2010. They must be for the taxpayer's principal residence, except for geothermal heat pumps, solar water heaters, solar panels and small wind energy systems (where second homes and rentals qualify). Tax credits are available at 30 percent of the cost, with $1,500 as the maximum total amount that can be claimed in 2009 and 2010, except for those items listed above and fuel cells. These items are not subject to the cap, and are in effect until 2016.