In addition to new incentives for first-time homebuyers, the economic stimulus package signed into law by President Obama on February 17 contains significant changes to energy efficient tax credits.

Previous tax credits for making energy efficient upgrades have now tripled -- to 30 percent of the homeowner's cost or a maximum of $1,500. Eligible improvements include those made to a taxpayer's principal residence which are placed in service from January 1, 2009 through December 31, 2010.

Remember that a tax credit is deducted directly from the amount you owe. This means that homeowners can save up to $1,500 on next year's tax return while also boosting the value and appeal of their homes.

What items qualify for this new tax credit? Most components that meet Energy Star or IECC (International Energy Conservation Code) guidelines are eligible, such as:

Exterior windows, doors and skylights

Metal and asphalt roofs

Insulation

Central air conditioning

Geothermal heat pumps and solar panels (not subject to the $1,500 maximum)

Water heaters

Solar and small wind energy systems.

For much more information about the enhanced energy-efficient tax credits, visit www.energystar.gov.

For a free consultation to discuss which type of mortgage loan will work best for you, call Victoria Spannaus at Wells Fargo Home Mortgage at (800) 741-7813 or 910-692-6225.

Reprinted with permission of The Printer, Inc.