This is very good news for homeowners. The tax credit for making energy efficient home improvements including energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters, has been raised to 30% of the cost of the improvements with a maximum credit of $1500.

This means if you spend just $4,500 on the cost of the improvements, you would receive a tax credit for $1,500 when you file your tax returns. Generally, most modern improvements like windows, furnaces, and air conditioners meet the necessary standards for energy efficiency.