Energy-efficient upgrades that will give you a tax break

A big cost of owning a house is what you spend on energy, but Uncle Sam offers tax breaks for energy-efficient home upgrades that can lower utility bills.

For existing primary residences, putting in energy-efficient windows and doors, furnaces, air conditioners, insulation, water heaters, roofs and other items qualifies you to take a tax credit of either 10% of the cost or specific amounts ranging from

$50 to $300, depending on the improvement. The credit is currently set to expire at the end of 2021, and a lifetime cap of

$500 applies to the total value of credits you can get in all tax years after 2005.

You can snag a more lucrative tax credit for certain renewable-energy systems on new and existing residences, including second homes. Congress recently extended the tax break; now you can get a 26% credit for projects placed in service by the end of 2022, or 22% for projects placed in service in 2023.

To see incentives available in your area, enter your zip code at www.dsireusa.org and www.energystar.gov/rebate-finder.

Here is a list of several upgrades that qualify for a federal tax credit and can pay off over time in energy savings.

Insulation and air sealing

Savings: An average 15% on heating and cooling costs — or an average 11% on total energy costs — for those who air seal their houses and add insulation in attics and crawl spaces or basements, according to the Environmental Protection Agency.

Tax credit: 10% of the cost of bulk insulation and air-sealing materials (installation costs are not eligible).

Heating and air conditioning

Savings: Replacing a heat pump or air conditioner that is more than 10 years old with a high-efficiency unit can save up to 20% on heating and cooling costs, according to Energy Star. Certified gas furnaces are up to 15% more energy-efficient than standard models and can save up to $85 a year in energy costs.

Tax credit: Up to $300 for qualifying central air conditioners and air-source heat pumps; up to $150 for qualifying gas, oil or propane furnaces and boilers.

Windows

Savings: Replacing single-pane windows with Energy Star-certified windows can save you from about $100 to nearly $600 in household energy bills a year for an average-size home, according to estimates by D & R International.

Tax credit: 10% of the cost of any Energy Star-certified windows (not including installation), up to $200.

Water heaters

Savings: An Energy Star gas storage water heater uses 10% less energy than a standard model, and a family of four can save hundreds of dollars in energy costs over its lifetime, according to Energy Star. With an electric heat pump water heater, a family of four can save as much as $3,750.

Tax credit: Up to $300 for qualifying gas, oil, propane or electric heat pump water heaters.