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Here’s a quick overview of the tax provisions in the Energy Bill President Bush signed on August 8, 2005 -

* A tax credit for the purchase of a hybrid gas/ electric, electric, or other alternative fuel vehicle. Credit ranges from $1,700 to $3,000 depending on various factors. Credit replaces the current $2,000 tax deduction for hybrid vehicles and is available 2006 through 2009, but is limited to first 60,000 vehicles from each auto maker.

* A tax credit of up to 10% of the cost of energy-saving improvements to primary residences (not rentals or vacation homes) done in 2006 and 2007, with a lifetime credit maximum of $500. Applies to such things as adding insulation and installing energy- efficient windows or high-efficiency heating and air conditioning.

* A tax credit for up to 30% of the cost of solar- powered hot water systems.

* Business tax credits for contractors who build energy-efficient homes and for manufacturers of energy-efficient appliances.

The provisions are full of limitations and specific requirements, and those taxpayers affected by the AMT might not benefit from all the new tax breaks.

The law also extends daylight savings time beginning in 2007. Starts the second Sunday in March rather than first Sunday in April and ends first Sunday in November rather than last Sunday in October.

Congress will be back in session after Labor Day, and they’re expected to take up a number of tax bills, including changing or eliminating the estate tax. It should be an interesting fall.

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