In today’s competitive real estate market, a home’s energy efficiency is a hot new selling point.

Record highs in oil and gasoline prices have initiated a new energy policy in the United States.

The U.S. Department of Energy is warning consumers to expect an increase in the cost of utilities, predicting that gas will cost 30 percent more than last year and home heating oil will cost 16 percent more. It is also giving incentives to homeowners who take steps to conserve energy  consumption.

The new “Energy Policy Act of 2005” now offers tax credits of $500 for taxpayers who spend money to upgrade their insulation, heating and air conditioning systems, thermostats, caulking, weather-stripping, windows and doors. Homeowners who install solar energy systems will be able to claim tax credits of up to $2,000 for power and hot water generating systems (except for those used to heat hot tubs or swimming pools.) Additional tax credits will be offered for those who install a clean-fuel vehicle re-fueling unit at your principal residence or at your place of business.

Making major energy-efficient home improvements can add significantly to your home’s market value.

For professional advice on all aspects of buying or selling real estate, talk to Anne Scott - 203.438.2284.