Since 2005, the federal government has offered a variety of tax credits to help defray the total cost of residential upgrades that produce years of utility savings but require a large upfront investment. One of the two biggest credits is the energy-efficiency tax credit, which helps pay for improvements to the home shell or for installing energy-efficient heating and cooling systems. This credit is capped at $500 and is set to expire at the end of the year. The other is the renewable-energy tax credit, which covers up to 30 percent of residential alternative-energy systems, has no cap and has been extended through 2016.
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