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Several Congressional bills are in the works that address energy efficiency in the United States, but don't get your hopes up. About the only pending federal legislation that directly addresses tax credits for homeowners investing in energy efficiency upgrade is the Cut Energy Bills at Home Act. According to the Alliance to Save Energy, the tax credit is based on annual predicted energy cost savings from heating, cooling, hot water and "permanent lighting" in a primary residence. For a minimum credit of $2,000, homes would need to reduce energy costs by 20 percent; for each additional 5 percent savings beyond that, the credit would be worth an additional $500. However the credit could not be greater than either $5,000 or 30 percent of the taxpayer's expenditures.
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