Time Is Running Out For Energy Tax Credit

Need a new furnace? Now is definitely the time to buy. An energy tax credit that gives a credit worth up to $1,500 for upgrading to an energy-efficient furnace expires on Dec. 31.

Other energy-saving equipment is also eligible for the credit, including water heaters and heat pumps.

According to various news reports, contractors and installers throughout the country are seeing an increased level of demand as consumers rush to purchase the equipment before the deadline.

A new, smaller incentive is being considered next year as part of a larger tax credit, but some industry experts have expressed frustration with the proposal because it doesn't make the upgrades worthwhile. The new credit would 10 percent of the cost of upgrades, with a cap at $500.

Are you planning to cash in on the tax credit by the end of the year? Let us know what you're buying!

Photo courtesy of The Home Depot