Looking for that extra push to go ahead with an upgrade in your home? If it's an energy-efficient upgrade you may qualify for a tax credit in April 2010. A provision in the American Recovery and Reinvestment Act of 2009 allows homeowners to claim tax credits for up to 30% (up to $1500) on energy-efficient upgrade projects such as windows, roofs, insulation and doors. 

While the tax credit for smaller projects will max out at $1500 (total, not per project), there is no cap for larger projects. Those homeowners planning on installing solar panels, solar water heaters and wind systems will see a credit of $1500 or more. The installation costs for these types of upgrades count toward the credit until 2016.

When planning a project you'll need to do a little research to make sure the upgrade qualifies for the tax credit. Not all Energy Star-certified doors and windows will qualify and such items as energy-efficient garage door openers won't qualify at all.

For your project to qualify, it must be "placed in service" during the tax year — the purchase of the materials doesn't count, the job must be complete. It is also suggested that you keep the Manufacturer's Certification Statement saying the item qualifies for the tax credit.

To help you determine if a planned upgrade may qualify for the credit, take a look at the list below.

These projects qualify for a tax credit up to $1,500 (30% of cost through 2010):

• Window, door replacement: Must have a U-factor and solar heat gain coefficient (SHGC) of 0.30 or less, which is a more stringent requirement than for some Energy Star-certified products. (U-factor and SHGC express heat flow through an object, hence its insulating value.) See http://www.garagewownow.com for more information on which garage doors qualify for credit.
• Roofing replacement: All Energy Star metal and asphalt roofs qualify. Download "Find a Product" from Energy Star's "Roof Products" page for more information. Synthetic roofs are not covered.
• Installing insulation: Insulation installations must last five years or have a two-year warranty. Insulated siding and cladding won't help you with a tax break, but vapor retarders will. It's not clear yet if spray foam and air sealing are covered, according to the Environmental Protection Agency.
• Heating and cooling systems: Not all Energy Star products will qualify for the tax credit. See the Consortium for Energy Efficiency product directory for qualified types of central A/C and air source heat pumps. Consult the Air-Conditioning, Heating and Refrigeration Institute for natural gas and oil-using heating products. Check pelletheat.org for information on biomass stoves.
• Water-heater replacement: Not all Energy Star gas-storage and gas-condensing water heaters will qualify for the tax credit. See "Residential Water Heaters Key Product Criteria" under Energy Star's "Products" tab.

These projects qualify for a tax credit of $1,500 or more (30% of cost installation through 2016):

• Geothermal heat pump: All Energy Star geothermal heat pumps qualify for the tax credit.
• Solar water heater: All Energy Star solar water heaters qualify for the tax credit, but it's unclear whether using them for radiant floor heating is allowed. No dice for swimming pools or hot tubs — the water must be used in the dwelling.
• Solar/photovoltaic panels: No federal restrictions on qualifying products available. Contact the Solar Energy Industries Association for further information.
• Small wind energy systems: No federal restrictions on qualifying products available. Contact the American Wind Energy Association for further information.
• You can also go to the Database of State Incentives for Renewables and Efficiency for information on state and local tax credits.

Source: msn.com and Popular Mechanics