Road ice and Energy Tax Credits

Yesterday I was previewing homes in Foresthill for some clients when it started to rain. It's not unusual during the winter or spring for me to be out in the wet weather previewing or showing homes, but Foresthill is a small mountain community another 2,000 feet above Auburn. When it rains in Auburn it is often snowing there. About halfway through my rounds it stated to hail. Not just the small pea size hail that we occasionally get in the foothills, this hail was the size of ice cubes. Then the lighting and thunder started. When the radio station began broadcasting "Emergency Broadcasting Notices" about severe storms in the higher elevations of Placer and El Dorado Counties I decided to cut short my tour and get off the mountain as quickly as possible and down to the lower elevation and safety of Auburn. That's when I nearly slid off the mountain. The road down the hill was covered in ice and snow. My haste to get down the hill was reflected in my foot on the accelerator and before my brain could process what all that clear glass-looking stuff (ice) was doing on the highway, I was into a downhill slide. Whoaaaaaaaaaaa.

Foresthill is a beautiful mountain community 15 miles above Auburn and the 80 highway. Like other high elevation communities the weather can change quickly. On my next trip up the hill I will remind my foot.

Now here is how you can save yourself $500 on your taxes next year.

Under the Energy Policy Act of 2005, homeowners who make certain energy-conscious improvements during the 2006 and 2007 tax years can claim a credit on their tax returns. To qualify, the law states, the component must meet or exceed the criteria established by the 2000 International Energy Conservation Code, including supplements, and must be installed in the taxpayer's principal residence.

Now, IRS says taxpayers can rely on manufacturers claim's that their products will qualify for the credit as proof the items meet the law's requirements.

There are different levels of credit, depending on the type of improvement made. But the maximum amount of credit for all energy-related improvements combined and undertaken by an individual homeowner cannot exceed $500 during the two-year period of the tax credit. Improvements eligible for the credit include the following:

· Added insulation to walls, ceilings or other part of the building envelope.

Replacement windows.
High-efficiency gas, oil and propane furnaces and boilers.
High-efficiency central air conditioning units, including air-source and ground-source heat pumps.
High-efficiency fans for heating and cooling systems.
High-efficiency water heaters, including heat pump water heaters.
A good website for information concerning federal tax credits for energy-related home improvements is EnergyStar.com.