Struggling homeowners trying to avoid foreclosure homes may benefit from the energy-efficiency tax credit program for home improvements under the economic stimulus package of the Obama Administration.

The U.S. Congress and the Obama Administration believed that energy efficiency is an important factor in helping the country kick start its languishing economy and reduce the number of foreclosure homes by offering savings to distressed homeowners to allow them to pay their monthly mortgages.

The National Association of Home Builders (NAHB) explained that the energy-efficiency tax credit under the Obama Administration's economic recovery program will provide financial incentives to homeowners to be energy-efficient on their rehabilitation projects between 2009 and 2010. This could mean savings for them to help them pay their debts and avoid foreclosure homes.

Under the Obama Administration, the lifetime cap has been increased to $1,500 and tax credit rate by 30 percent. The list of qualified home improvements has been expanded and the application deadline extended until December 30, 2010 which gives distressed homeowners enough time to take advantage of the tax credit program to protect their properties from becoming foreclosure homes.

Under the Bush Administration's economic recovery package, homeowners could avail of the 25C tax credits by installing energy-efficient doors, roofing, windows , insulation, air conditioners, heat pumps and furnaces.

However, remodelers complained that terms of the tax credit were not attractive enough to motivate homeowners to create energy-efficient improvements, even if it means savings for them which they can use to help pay their mortgages to avoid foreclosure homes.

According to Greg Miedema, NAHB Remodelers chairman, the tax credits under the Obama Administration's economic recovery program which includes foreclosure prevention, aligns with an industry study showing that aggressive energy-efficiency goals for existing and new homes would not make a difference in the overall energy consumption.

He said that retrofitting and remodeling older and foreclosed homes are the most effective way to achieve energy efficiency.

And to top it all, Miedema said that the tax credit program is another way for the home building industry to prevent the potential impact of the global climate change and warming by motivating homeowners to make home improvements that are energy efficient,