06:53 PM CST on Tuesday, December 6, 2005

From 11 News Staff Reports

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Customers will see higher natural gas bills this winter.

If you're planning to make some energy-saving improvements to your house, waiting another month to buy the materials and begin the work could save you hundreds or even thousands of dollars.

If your monthly energy bill is $100, $45 of that goes heating and cooling, $11 for water and $10 for laundry.

But the new Energy Policy Act of 2005 is coming to the rescue.

AP

Total credits for home improvements are limited to $500 between Jan. 1, 2006, and Dec. 31, 2007.

"In 2006 you can get energy credits for energy efficiency purchases you make for your home," said CPA Bob Martin.

Martin said there are different levels of credit depending on the type of energy improvements made.

“What generally qualifies is insulation, energy-efficient windows, metal roofs and caulking,” he said.

Here’s how the numbers break down:

Adding insulation, new doors and sealing ducts will earn a $500 in 2006-07 -- actual money back in your hands.

A gas and oil-fired or an electric water heater will earn you $300.

Installing high-efficiency central air conditioning units and fans for heating and cooling systems will garner $300, and replacing windows adds another $200.

Getting actual money back from Uncle Sam in exchange for saving money down the line sounds great, but there’s a catch.

The items have to meet specific criteria, and the total credits for home improvements are limited to $500 between Jan. 1, 2006, and Dec. 31, 2007. Receipts must be kept for tax returns.

So, should taxpayers take advantage of this?

“They’d be crazy not to, looking at the high price of energy which seems to continue to increase,” Martin said. “But people may want to look and postpone certain expenditures until January first.”

Postpone buying a hybrid car until next year, because doing say may earn up to $2,200 back from the government.

There are also tax credits for homebuilders and owners of commercial buildings.