Today, a great deal of the emerging recovery of our housing market in the Inland Empire is spurred by tax credit programs for first - time homebuyers recently enacted by the United States government and the State of California.

As part of our month - long celebration of American Remodeling Month in May, I am pleased to report that new tax credits are now available to homeowners remodeling existing homes. Homeowners now can claim up to $1,500 in expanded energy - efficiency tax credits for remodeling their principal residence to reduce energy consumption, according to the National Association of Home Builders (NAHB). Available until the end of 2010, the revamped Existing Home Retrofit Tax Credit (25C) helps consumers save two ways: on their costs and on their utility bills.

For example, homeowners can transform an existing house into a more comfortable, environmentally - friendly and energy - efficient home by using these tax credits is to 'tighten' the house to reduce air leakage by adding insulation, fixing ducts and installing a more efficient heating and air conditioning system which will save on energy bills in the long run. The expanded federal tax credit refunds 30 percent of the product replacement cost up to a total of $1,500, and can be used for heating, ventilating and air conditioning systems (HVAC), insulation and water heaters, windows, doors and insulation that meets the IRS qualifications. In some cases, the installation costs may also be used to claim the tax credit.

Insulation improvements may be one of the easiest and most affordable ways to save on energy costs. Inspecting the ductwork, caulking and heating & cooling systems for possible upgrades or enhancements also help to provide additional energy savings.

Homeowners also can use the tax credit for heating and cooling components. Spending as little as $2,000 more for a higher efficiency air-conditioner earns the homeowner the $1,500 energy- efficiency federal tax credit. Plus, your local power company may provide additional rebates. With the tax credit and utility rebate the cost difference can be paid back in a couple of years while the homeowner may enjoy utility bills savings for years to come.

With the credit, tankless water heaters are comparable in cost to traditional gas water heaters but last as long as 20 years and are up to 30 percent more efficient. When the credit is included, homeowners can save up to $100 per year on their water heating expenses.

In addition to expanding the 25C tax credit, the Wind, Solar, Geothermal and Fuel Cell Tax Credit (25D) credit for renewable energy products now provides larger incentives for installing geothermal heat pumps, solar panels, solar hot water heaters, small wind energy systems and fuel cells. The, tax credit is 30 percent, there is no cap on their cost through 2016 and taxpayers can claim the credits on IRS Form 5695.

These are just some examples of how the energy-efficiency tax credit helps consumers save money in making home improvements and cutting down utility bills. To find out how you can benefit from this tax credit, you can find a qualified remodeling professional at www.nahb.org/directory.aspx?directoryID=387 to advise homeowners on installing tax credit-qualified improvements in the home.

Homeowners can use an energy-savings simulation from the NAHB Research Center at http://energysim.toolbase.org to determine likely costs of upgrades and savings. Information on rebates from utility companies and other state and local government incentives is available at www.dsireusa.org.

For more information about the tax credit, visit www.nahb.org/efficiencytaxcredit. For more information on the many ways remodeling can improve your home and finances, visit www.nahb.org/remodel on the web.

For information on first time home - buyers tax credits, visit the State of California tax credit program at the California Franchise Tax Board website at www.ftb.ca.gov or call 888.792.4900 and press '5' or visit www.FederalHousingTaxCredit.com.

And have a Happy American Remodeling Month.

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