Federal Tax Credit

The Energy Policy Act of 2005 includes tax credits for consumers when they make energy efficiency improvements. A tax credit can provide you with significant savings. It reduces the amount of income tax you have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the tax itself. You must refer to the final IRS rules to determine what qualifies for the tax credit.

For more information, visit Federal Tax Credits.