How to cash in on energy efficiency tax credits

One of the small pieces of big bailout bill that homeowners can cash in on directly, are energy tax credits offered to reward you for energy saving improvements. As part of the Economic Stabilization Act of 2008 signed into law in October, homeowners have the opportunity to earn up to $500 in one-time credits with upgrades providing in-home comfort, reducing air pollution and delivering long-term energy savings.

Here's how it works:

Purchase and install any combination of qualifying products at your primary residence between January 1 and December 31, 2009, and with the help of IRS Form 5695, purchase receipts and manufacturer certifications (e.g., the Energy Star label for windows), and your tax advisor's guidance, apply for credits.

Also, if you earned up to but claimed less than the similar energy efficiency tax credits offered during the 2006 and 2007 tax years, you'll be able to claim the unused portion in the coming year (once again, consult your tax advisor for details).