President Barack Obama signed the $787 billion economic stimulus bill, which means homeowners with drafty windows, old water heaters, or other root causes of high-energy bills may be rewarded for greener home improvements. If you were planning to do some of these improvements to save on your energy bill, you should take advantage of the tax savings.

Energy Efficient Items
Under the bill, consumers who buy and install certain products – such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment – in their existing home and principal residence can receive a tax credit for 30% of the cost, up to $1,500, for improvements "placed in service" through December 31, 2010.

Renewable Energy Items
If homeowners are thinking of switching to renewable energy sources by installing solar energy systems, geothermal heat pumps and small wind turbines, there is no better time. Right now, with a federal tax credit of 30% of cost with no upper limit, a $24,000 investment to make your home greener and more energy efficient would generate a tax credit worth $7,200.

“This is by far the biggest incentive that the federal government has put forth in years. The best thing about it is that it rewards energy-efficiency investments that increase the value of a home, which is the direction we should all be striving for,” said Enrique Piñeiro, founding principal and broker of record, Ros Realty, and a LEED (Leadership in Energy and Environmental Design) Accredited Professional.

For a complete list of items included in the Federal Tax Credit, and for information on how to apply for the Federal Tax Credit, please visit http://www.energystar.gov/index.cfm?c=tax_credits.tx_index.