WHO GETS WHAT: Tax Breaks for Energy Conservation

SHARE Looking to buy a new furnace or air conditioner or replace drafty windows? Congress may soon give you a break that could save you hundreds of dollars.
President Barack Obama speaks at the Energy Department in Washington, Thursday, Feb. 5, 2009. (AP Photo/Charles Dharapak)
(AP)There's also money to install solar panels for the water heater, or add insulation to the attic — maybe even put up a small windmill.
The $900 billion economic recovery package before Congress includes more than $50 billion in energy-related grants, tax breaks and loan guarantees to spur solar and wind energy development and to cut energy use in everything from government buildings to schools and homes.
"This far outstrips any previous federal funding for such programs," says Kateri Callahan, president for the Alliance to Save Energy, an energy conservation advocacy group.
While the recovery package is touted as a stimulus to create thousands of "green energy" jobs, the average homeowner could be among those who will reap major benefits.
Both the House-passed stimulus package and the Senate version include $4.3 billion in tax breaks for residential energy-efficiency improvements including the purchase of more-efficient furnaces, heat pumps and air conditioners as well as for energy-tight windows and more insulation.
There's another $300 million to go to states as matching grants to promote utility-sponsored rebates for the purchase of more energy-efficient appliances, and tax breaks for people wanting to install solar panels to power water heaters.

On Thursday, President Barack Obama directed the Energy Department to end long-standing delays in more stringent energy efficiency standards for an array of consumer products, including dishwashers, lamps, ranges and ovens, demanding they be issued by August.
"This will save consumers money. This will spur innovation," Obama said.
Unlike past efforts by Congress to use taxes to spur energy efficiency, the proposals in the stimulus package are substantial: A credit of 30 percent of the cost of the equipment with a maximum for a household of $1,500, triple what Congress enacted four years ago.