Energy tax credit explained

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We're having a real winter this year. As opposed to a few winters past, we've already seen several snows and have had the heater cranked up for months. I happen to live in an old house (and by old, I mean about 130 years), so heating it can be a challenge. Our old unit isn't cutting it anymore, and we're going to have to replace it. Fortunately, we might get a tax break for doing so.

Under current law, taxpayers may be eligible for a federal income tax credit for the purchase of a new energy-efficient water heater, air conditioner or furnace. But it doesn't stop there. The credit also applies to such improvements as windows and doors, roofs and insulation. You can find a detailed list of qualifying purchases on the Energy Star Web site.

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