Federal tax credits for energy efficient home improvements have been extended into 2009.

The recently-signed “Emergency Economic Stabilisation Act of 2008″ included an extension of the residential tax credits for energy efficient improvements. The previous tax credits expired at the end of 2007.

The new tax credits for installing energy efficient improvements are only good for 2009 installations - there will be no tax credits for improvements installed during 2008. So, if you’re doing some tax planning for 2009, it may be best to hold off on doing these types of improvements until after January 1!

Tax credits are available for insulation, replacement windows, water heaters, and certain high efficiency heating and cooling equipment. However, be aware that not all Energy Star rated improvements are eligible for the tax credit. Be sure to check EnergyStar.gov for rules and more details.

Here are some examples of the federal tax credits that are available to homeowners:

• Windows: 10% of cost, up to $200, for qualified ENERGY STAR windows, skylights and storm windows
• Doors (exterior): 10% of cost, up to $500, for qualifying doors (most ENERGY STAR doors will qualify)
• Roofs (metal): 10% of cost, up to $500, for qualifying ENERGY STAR metal roofs
• Insulation: 10% of cost, up to $500, for qualifying insulation (not vapor retarders or siding)
• Air Conditioning (split or package systems): $300 for qualifying systems, not all ENERGY STAR systems qualify
• Water Heaters (tankless only): $300 for qualifying systems
• Cars: Credits are available for certain cars, and is limited by 60,000 per manufacturer before a phase-out period begins
• Solar Water Heating: 30% of cost, up to $2,000, not available for water heaters used for pools or spas
• Solar Power (Photovoltaic): 30% of cost, up to $2,000, must provide electricity for the home
• Fuel Cells: 30% of cost, up to $1,000 per kW of power that can be produced

Please be aware that California may provide similar credits as well! See Go Solar California and California Solar Initiative for more information on solar power and available tax credits for California homeowners. Currently the California solar water heating credit is only available as a pilot program in San Diego. Southern California Edison (SCE) is also offering 90-minute Homeowner Solar Information Sessions, with upcoming sessions in Santa Barbara and Santa Monica. You can also take SCE’s Online Home Energy Survey to learn more about saving energy in your home.