The recently-signed “Emergency Economic Stabilization Act of 2008″ includes an extension of the residential tax credits for energy efficient improvements. The previous tax credits expired at the end of 2007.

It’s important to note that the new tax credits for installing energy efficient improvements are only good for 2009 installations. There are no tax credits for improvements installed during 2008.

The tax credits are available for insulation, replacement windows, water heaters, and certain high efficiency heating and cooling equipment. However, be aware that not all Energy Star rated improvements are eligible for the tax credit. Be sure to check EnergyStar.gov for rules and more details.

Here are some examples of the federal tax credits that are available to homeowners:

- Windows: 10% of cost, up to $200, for qualified ENERGY STAR windows, skylights and storm windows
- Doors (exterior): 10% of cost, up to $500, for qualifying doors (most ENERGY STAR doors will qualify)
- Roofs (metal): 10% of cost, up to $500, for qualifying ENERGY STAR metal roofs
- Insulation: 10% of cost, up to $500, for qualifying insulation (not vapor retarders or siding)
- Air Conditioning (split or package systems): $300 for qualifying systems, not all ENERGY STAR systems qualify
- Water Heaters (tankless only): $300 for qualifying systems
- Cars: Credits are available for certain cars, and is limited by 60,000 per manufacturer before a phase-out period begins
- Solar Water Heating: 30% of cost, up to $2,000, not available for water heaters used for pools or spas
- Solar Power (Photovoltaic): 30% of cost, up to $2,000, must provide electricity for the home
- Fuel Cells: 30% of cost, up to $1,000 per kW of power that can be produced

Originally designed to make sure wealthy people could not use legal deductions and congressionally created loopholes to drive their tax bill to zero, or close to it, the AMT is now increasingly affecting the middle class.

And that can be a particular problem for people who are not used to figuring out sticky tax issues.

The AMT is figured separately from your regular tax liability — with different rules — and you have to pay whichever tax bill is higher.

This is a year-end issue because certain expenses that are deductible under the regular rules — and therefore it might make sense to accelerate payments — are not deductible in AMT-land.

State and local income taxes and property taxes, for example, are not deductible when figuring the AMT. Thus, if you expect to be subject to the AMT in 2008, don’t pay in 2008 the installment that’s due in January of 2009. Also, while medical expenses that exceed 7.5% of your adjusted gross income can be deducted under the regular rules, the threshold is 10% for the AMT.

Interest on up to $100,000 of home-equity loan debt is deductible under the regular rules, no matter how you use the money — so you want to be sure you’re up to date paying that interest. But under the AMT, home-equity loan interest is only deductible if the money was used to buy or improve your primary or second home.

In recent years, lots of taxpayers fell into the claws of the AMT because of the AMT’s special treatment of incentive stock options. Sometimes, though, selling stock acquired via options before the end of the year can get you out of AMT-land.