In this report
Overview
No need to rush

No need to rush

Last reviewed: December 2009
Insulation
Warm and cozy
Adding insulation to your home's walls or attic can cut your heating bills as well as your taxes. 

These new tax breaks for 2009 will still be around in 2010:

Home energy tax credit

Taxpayers, regardless of income, can get a credit of as much as $1,500 for qualified home improvements, including insulation, windows, and energy-efficient heating and air-conditioning systems.

Plug-in electric vehicle credits

Buyers of qualified vehicles can get a credit of $2,500 to $7,500, depending on the vehicle's battery capacity. There's another credit of up to $2,500 for certain lower-speed electric and two- and three-wheeled vehicles bought between Feb. 17, 2009, and Jan. 1, 2012.

Computer purchases from 529 plan

You can use tax-free payouts from a 529 college savings plan to pay for an eligible student's computer equipment and Internet access.

Expanded tuition tax credit

You may be able to take an American Opportunity Credit of up to $2,500 per student per year for qualified higher-education tuition, fees, and books. The credit begins to phase out for single taxpayers with modified adjusted gross income of $80,000 ($160,000 for joint filers). It applies only to the first four years of post-secondary education.