If you've been waiting for your share of the government bailout money, your time has come. While you're not going to get the big bucks that the miscreants at AIG got, the government is offering meaningful money for homeowners. Specifically the federal government is offering tax credits for homeowners who improve the energy efficiency of their homes and this is especially good news if you own an old house. But the rules and requirements are bit tricky. So, to get a good fix on how all of this works, I spoke with an expert in the home improvement field, Jon McCormick, president of American Building Supply, an Omaha company.

"Tax credits are available at 30 percent of the cost, up to $1,500, for existing homes for: windows and doors, insulation, certain HVAC upgrades and a few other products," says McCormick. The tax credits apply to improvements placed in service between January 1, 2009 and December 31, 2010. "Unfortunately", McCormick notes, "energy efficiency upgrades made last year don't qualify, but going forward there are opportunities never offered before. Homeowners can put more money back in their pockets at tax time and save now by cutting their energy costs. It's a win, win situation."

But McCormick cautions, "Every product out there does not qualify for the tax credit. For example, not every window manufacturer has a window that meets the (government's) requirements. If you put new windows in service between January 1 and June 1 of this year those windows must meet Energy Star criteria to qualify for the tax credit. After June 1 the requirements are more stringent. Just meeting Energy Star criteria is not enough. After this date windows have to have a U Factor equal to or less than .30 and Solar Heat Gain Coefficient equal to or less than .30. And, guess what, the government may not just take your word for it. You could be audited. So take the Manufacturer's Certification stickers off the windows and keep them in a file with your tax returns along with your purchase receipts in case of the government checks up on you. So what consumers need to know is to do business with a reputable company, a reputable manufacturer so the product tests out to what it says it will and you get your stickers." Improvements made in 2009 can be claimed when you file your taxes next year. Go to www.irs.gov for Form 5695 (2009 Version).

The tax credit as applies to setback thermostats, certain heating and air conditioning equipment and insulation, among others. There are many energy upgrades which will improve the comfort in your old house and make a serious dent in your gas and electric bills. McCormick advises "consumers to bundle together energy-saving products to maximize the amount of their tax credit. You get the payback plus the added valuation in your home." But bear in mind the tax credit only applies to the product itself, not the installation costs. So when you get bids for your energy upgrade projects, make sure the bidders break out the product costs separate from the labor costs so you can calculate the amount of your tax credit.

There are a few other-less common--home improvements which also qualify for the Federal Tax Credits for Energy Efficiency. Visit www.energystar.gov for the details.

"The energy efficiency tax credit stimulus is really targeted toward old houses like those in Dundee," McCormick observes. "The goal is to bring old houses up to the energy-efficiency standards of new home construction and reduce the carbon footprint. Improving your home not only takes advantage of the tax credit but also is a way to be responsible and green."