Q I have a question regarding the tax credit for installing new energy-efficient windows. How do I take the $1,500 tax credit on my income taxes? I don't itemize but take the standard deduction, so will the $1,500 still be credited? I have called three window companies and each tells me that they don't know.

A The energy tax breaks are tax credits, not deductions, so it doesn't matter whether you itemize or not.

Credits, by the way, are much better than deductions. Credits result in a dollar-for-dollar reduction of tax liability. A $1 credit means that your tax liability will be reduced by $1. Deductions will only reduce your tax liability by a fraction of a dollar. (If you are in a 15 percent tax bracket you lower your taxes by 15 cents for every dollar you claim as a deduction. If you are in the 25 percent bracket you get 25 cents on the dollar, etc.) Also, in most instances an individual must itemize in order to benefit from a deduction; whereas credits generally apply regardless of whether you itemize or claim the standard deduction.

To claim the tax credit for your windows, use Form 5695, Residential Energy Credits. (A taxpayer can claim 30 percent of the cost of all qualifying improvements to a maximum of $1,500 for improvements placed in service in 2009 and 2010. That's a $1,500 maximum over the two years -- so a taxpayer could claim, say, $1,000 one year and $500 another year; not $1,500 each year.)

The credit applies to improvements such as adding insulation, energy-efficient exterior windows and energy-efficient heating and air conditioning systems. More information on the energy credits (and other tax breaks in the American Recovery and Reinvestment Act) is available at www.irs.gov

Carrie Resch, IRS, St. Paul

Send your questions to Fixit in care of the Star Tribune, 425 Portland Av. S., Minneapolis, MN 55488, or call 612-673-7032, or e-mail fixit@startribune.com. Past columns are available at www.startribune.com/fixit. Sorry, Fixit cannot supply individual replies. Fixit appears everyday except on Friday.