Nov. 8--Who doesn't like a little cash incentive, especially when those dollars are coming from the federal government? Through the end of the year, the government is running the Federal Tax Credits for Energy Efficiency program. Basically, that means if you make your home more energy-efficient (see box for specific guidelines), you can score some greenbacks come tax time.

One of the great things about a tax credit, rather than a tax deduction (what you get when you make charitable donations), is that the credit comes straight off the amount of taxes that is owed. A credit is, essentially, cold, hard cash. (Although that also means you will need money up front to pay for the project.)

Since few of us can afford to make all the upgrades and changes on the 11-item-long Energy Star list, we talked with energy industry experts regarding which improvement options can be the most cost-effective and offer the best financial return. (Windows, for example, aren't the best option as it can take up to 25 years to see savings that match your investment, according to Tom Lynch, spokesman for NYSERDA.)

Air sealing and insulation

If your windows leak around the seams or your attic or other insulation is weak, energy is seeping out of your house each day. Insulation and air sealing is not a big cost, says Lori Clark, associate project manager with NYSERDA, and you will see direct savings in your heating and cooling costs.

A little extra padding in the attic can go a long way to reducing energy consumption, says Chris Spencer, an energy-efficiency expert with Lennox Industries. According to the U.S. Department of Energy, roughly 80 percent of older homes (those built before 1980) can benefit from additional attic insulation. Spencer says that if the insulation in the attic is level with or below the attic floor joists, you probably need to add more. Properly insulating and sealing a home can cut heating and cooling bills by 10 percent, according to the Department of Energy.

Total cost: Around $3,000. Tax credit for insulation: 30 percent of cost, up to $1,500.

Heating system

Replacing your heating system is a two-fold benefit, says Bob Long, Jr. with Long Heating and Cooling in Albany. Since the tax credit incentive began earlier this year, Long has seen about a 30 percent increase in people upgrading their heating system to high-efficiency units. Increasing your efficiency reduces your electrical load and can reduce your oil, propane or natural gas costs, Clark points out.