Tax Credits and Timely Tips for Winter Energy Bill Relief

WASHINGTON, D.C. — This winter, consumers will experience little relief from 2005 heating costs as prices will remain high for a colder winter than last year. But instead of panicking, consumers can take simple, low-cost steps, and can also use federal tax credits for efficiency investments to improve comfort and save money. The American Council for an Energy-Efficiency Economy (ACEEE) and other organizations have created a one-stop-shopping resource for the tax credits at www.energytaxincentives.org. Homeowners can get up to $500 total in credits for high-efficiency heating equipment, air conditioners, and water heaters, as well as replacement windows, insulation, duct sealing, and air leakage reduction. Since these incentives run out at the end of 2007, now may be a good time to make these investments.

ACEEE offers several resources to help consumers stay comfortable while lowering winter energy costs, from no-cost/low-cost measures to major investments. "Consumers can often get the best 'bang' for their limited 'bucks' by taking low-cost steps to run their homes more efficiently before investing in big-ticket items," said Katie Ackerly of the Buildings Program Research staff. Consumers can cut their energy use by following the simple, inexpensive tips that ACEEE offers in the Consumer Guide: Condensed Online Version. Five practical, low-cost/no-cost steps are:

• Clean or replace furnace filters monthly or as specified.
• Get a tune-up for your heating system: every year for oil, every 2 or 3 years for other fuels.
• Close your storm windows or install temporary shrink-wrap storm window kits.
• Set back your thermostat overnight and when you're away from home; better yet, install a programmable thermostat to do it for you.
• Seal seams and gaps in exposed ductwork, and then insulate the ducts.

These and other tips are all available for free on ACEEE's Consumer Resources Web site. A paperback edition of the Consumer Guide to Home Energy Savings is available for purchase online for consumers who want more extensive information about home energy use.

"Consumers may want to think about replacing their furnaces and boilers," suggested Harvey Sachs, Director of the Buildings Program. If the existing furnace or boiler has a standing pilot light that burns year-round, or if you live in a cold climate, an ENERGY STAR® furnace or boiler is likely to be a good investment, particularly if the system is 20 years old or more. The highest-efficiency units (95% AFUE or higher) are eligible for $150 in federal tax credits. Finding a qualified contractor is important; suggestions for choosing a contractor are given on ACEEE's Web site.