New Residential Window Tax Credit

Section 1333 of the 2005 Federal Energy Bill creates a tax credit for purchasers of energy-efficient residential energy property.  The credit is equal to the sum of 10 percent of the cost of the residential energy-efficient improvements, and the cost of residential energy-efficient property expenditures, as detailed below, with a lifetime cap of $500 per taxpayer.  No more than $200 of the credit can come from the purchase and installation of windows.  Also, for any given year, no more than $50 can come from the purchase of an advanced main air circulating fan, no more than $150 from the purchase of a furnace or boiler, and no more than $300 from any item of an energy-efficient building property.  These credits will be available starting January 1, 2006 and will expire January 1, 2008.