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Tax Incentives Now Available for Energy-Efficient ProductsI am researching adding solar panels to the house. I have cut my carbon footprint considerably by turning my bike into my primary transport, and now I am looking doing the same at home. I have already replaced most of my lightbulbs with compact fluorescents. I am also looking at replacing my fridge with an extremely energy efficient one, maybe a SunFrost. They had the best power consumption ratings of any other AC powered fridges on the market. I also found this tidbit released by the Governor of Alabama's office: Alabamians may be eligible for federal tax breaks if they buy energy-saving products and put them into use from January 2006 to December 2007, according to the Alabama Department of Economic and Community Affairs. The breaks are included in the new federal Energy Policy Act. “Energy-efficient products save both energy and money,” Gov. Bob Riley said. “These new federal tax incentives are just another benefit of using energy-saving products.” By making energy improvements to your home, you can earn up to $500 in tax credit. You can claim the credit for installing energy-efficient windows, doors, roofs, heating and cooling systems or insulation. The act provides tax credits of up to 30 percent of the cost of purchasing and installing solar-powered hot water systems and solar photovoltaic panels in your home for a maximum of $2,000 each. The two credits can be combined for a maximum of $4,000. Purchasing an electric or hybrid vehicle also can give you a break at tax time. Buyers of hybrid vehicles, which run on a combination of gas and electric power, can get a tax credit between $250 and $3,400. A tax credit of up to $4,000 is available to those who buy a car powered by rechargeable electric batteries. For more information on the incentives, go to www.energytaxincentives.org or contact the Energy, Weatherization and Technology division of Alabama Department of Economic and Community Affairs at (800) 392-8098.
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