PARKERSBURG - Replacing old doors and windows, installing insulation, remodeling and building with an eye toward energy efficiency could do more than help save on utility bills down the line, it may also translate into savings on your tax bill as well.

According to the U.S. Department of Energy, The American Recovery and Reinvestment Act of 2009 extends, expands, and simplifies federal income tax credits for homeowners who make energy efficiency home improvements. The law extends consumer tax benefits through 2010; triples the total available tax credit from $500 to $1,500, and increases the tax credit to 30 percent of the cost of each qualified energy efficiency improvement. It also removes the cap on geothermal heat pumps and solar water heaters through 2016.

Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30 percent of the cost, up to $1,500, for improvements placed in service starting Jan. 1, 2009, through Dec. 31, 2010.

Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30 percent tax credit for systems placed in service before Dec. 31, 2016.

David Van Horn, owner of Ameri-Craft Corporation of Williamstown, serves as president of the West Virginia Homebuilder's Association and the Homebuilder's Association of the Mid-Ohio Valley. He said information about the stimulus package is just circulating and most consumers probably are just now becoming aware of the possibilities.

"But I think it's going to be good for both sides; the homeowner gets a break and the contractors get the job," Van Horn said.

During a recent meeting, state officials said the building industry overall is up about 17 percent over the last couple of months, Van Horn said.

"Things are starting to improve somewhat," he said.

If a person is building a new home, according to the Department of Energy, they can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells.

Jeff DePuy, an accountant with the firm of Perry & Associates in Parkersburg, said his office has been receiving inquiries from clients interested in taking advantage of the tax credits.

"We have had probably one or two inquiries a week, they are asking about what they should buy, how much of a credit they will receive, following up on what they heard or were told. The energy credits are for items like insulation, installation of more fuel efficient furnaces, replacing older windows, doors, replacing heating or air-conditioners with fuel efficient models. It is a tax credit which is a direct reduction in the amount of tax paid," DePuy explained. "There is a special form (No. 5695, residential energy efficiency property credit) you file with the tax return. There is a cap on the amount of the tax credit.

"A lot of people don't look for the credit, they may have replaced windows or gotten insulation for the attic and not even thought about it, they were just looking for the energy savings," he said. "The credit is applicable to purchases made in 2009, so you would claim it on your 2009 return which you file in 2010," DePuy noted. "You just need to bring in your receipts showing proof of purchase," he said.

More information is available on the American Recovery and Reinvestment Act including specific projects and equipment it covers, go to the Alliance for Energy's Web site at: ase.org/ and click on the Energy-Efficiency Home and Vehicle Tax Credits link at the bottom of the page and the U.S. Department of Energy's Web site at: http://www.energy.gov/recovery/taxbreaks.htm.