Alternative energy systems that qualify include:

-          reflective roofing (look for specially treated asphalt or reflective metal and reduce your air-conditioning costs by 15%);

-          energy efficient doors and windows (look for windows with low-E glass and inert gas between double panes and spacers; look for doors with frames made of vinyl-clad wood or fiberglass with insulating core materials and weather stripping; also installing a storm door qualifies for a credit);

-          insulation (add an additional layer of R-19 or R-30 in the attic and save up to 20% on heating and cooling bills);

-          efficient hot water heaters (gas, propane or oil  heaters with a thermal efficiency of 90% qualify, or a tankless “on demand” system that runs on natural gas or propane – these eliminate the need to keep several gallons of water hearing at all times); and

-          heating and air conditioning systems (look for energy Star package systems or even split systems for your AC; heating systems must be highly efficient and have an Annual Fuel Utilization Efficiency rating greater than 90 for gas furnaces and greater than 85 for oil furnaces, boilers, and waters-heating systems). 

So, if you find yourself with a leaky roof and no choice but to fix it, get some of your investment back right away by choosing the eco-friendly materials.  In addition, you’ll reduce your cooling costs.  Down the road when your AC goes out, you can purchase a smaller system that is less expensive to run (even more savings).   While you’re up there working on the roof, you may as well add a layer of insulation– immediate tax credit, long-term savings on energy costs.

Additional tip – For anyone who’s got the cash to be a little more aggressive, or anyone who’s building from scratch, installing a wind turbine or a solar power system entitles you to a 30% tax credit with no limit.