There is still time to make energy efficient home improvements in 2010 and cash in on a federal  income tax credit at the same time.  The credit is available to individuals who make eligible home improvements designed to save energy and who did not receive $1,500 of residential energy tax credits in 2009.

This credit reduces income tax by 30% of the cost of new insulation, windows, doors, high-efficiency furnaces, water heaters and central air conditioners up to a maximum credit of $1,500.  The products must meet energy efficiency standards which can be found at www.energystar.gov/taxcredits.

A manufacturer’s certification statement verifying that the property meets the energy efficient technical requirements should be obtained when products are purchased.  Also the improvements must be made to an existing home that is also your principal residence.  New construction and rentals do not qualify.  The credit expires December 31, 2010.

Other tax credits expire on December 31, 2016 for the purchase of geothermal heat pumps, solar energy systems, small residential wind turbines and residential fuel cells.  Improvements to rental properties do not qualify and there are other limitations as well.  The Energy Star website has all the details.