We have been getting a lot of questions about the 2006 Federal Tax
Credits so here is some overview information:
You can get a one-time tax credit for a total of $500 for installing
efficient new windows, insulation, roofs, tankless heaters and high
efficiency boilers in your home.
Who gets it?
Individuals who install specific energy-efficient home improvements.
What products are eligible?
Exterior windows 10 percent of the total cost, up to $200.
Insulation, exterior doors, or pigmented metal roofs: 10 percent
of the total cost, up to $500. Duct sealing and weather stripping like
Central air conditioner, heat pump, or tankless water heater: up
to $300 towards the full purchase price.
Bosch Aquastar 250SX Natural Gas and Propane Gas
Bosch Aquastar 250SXO Natural Gas and Propane Gas
Bosch Aquastar 125HX Natural Gas and Propane Gas
Bosch Aquastar 125FX Propane Gas only
Takagi TKJr Natural Gas and Propane Gas
Takagi TK2 Natural Gas and Propane Gas
Takagi TKD20 Natural Gas and Propane Gas
Takagi TM1 Natural Gas and Propane Gas
Toyotomi Oil Water Heaters
More Tankless Info here:
Furnace or boiler: up to $150 towards the full purchase price of
a boiler like the Monitor Boiler
What is a tax credit? You don't receive an income tax credit when you
buy the product, like an instant rebate. You claim the credit on your
federal income tax form at the end of the year. The credit then
increases the tax refund you receive or decreases the amount you have
Tax credits vs. tax deductions. In general a tax credit is more
valuable than a similar tax deduction. A tax credit reduces the tax you
pay, dollar-for-dollar. Tax deductions - such as those for home
mortgages and charitable giving, for example - lower your taxable
If you are in the 30 percent tax bracket, your income tax is reduced by
30 percent of the value of a tax deduction. But a tax credit reduces
your federal income tax by 100 percent of the amount of the credit.