A somewhat confusing credit, this one requires close attention to types of property purchased for installation in your main home. The credit has a basic limit of 30% per category, and an overall limit of $1500 for 2009 & 2010 combined. Qualifying property must meet or exceed specific criteria established by the International Energy Conservation Code. Your preparer at Salem Tax & Financial can help with an exact determination of specifications. Home improvements eligible for the credit include:

- Energy-efficient building components installed in your main home (must be in the U.S.) such as insulation, exterior doors, exterior windows including skylights, and certain metal roofs;

- Energy-efficient heat pump water heaters, electric heat pumps, geothermal heat pumps, central air conditioners, and natural gas, propane, or oil water heaters;

- Natural gas, propane, or oil furnace, or hot water boiler;

- An advanced main air-circulating fan.