Is your home especially cold in the winter and unbearably hot in the summer?

Maybe it needs an energy makeover.

Thanks to changes in the tax law, the federal government will help pay the cost of making your home more energy efficient.

You can save as much as $1,500 in taxes by installing certain energy-saving products in your home in 2009 and 2010.

For example, you could install new skylights, ceiling fans, a furnace, or energy efficient doors and windows.

So how does this work?

The government gives you a tax credit worth 30 percent of what you spend on certain products. If you spend $5,000 on new windows, for example, youd qualify for the full $1,500 credit. And that credit reduces your tax bill or increases your refund dollar for dollar.

Think of it this way: the government is giving you money to help you save energy. And that helps you save money, too.

There are just a few simple rules:

The products you buy must meet certain energy-saving standards. Go to energystar.gov for more information.

Also, the improvement must be to your main home, not a rental or vacation home.

Finally, the $1,500 limit is for 2009 and 2010 combined, NOT per year.

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A tax credit that helps pay for college is now much bigger and better.

Bigger, because it puts more money in your pocket. And better, because more families qualify for the cash

What used to be called the Hope education credit, is now the American Opportunity credit.

Heres how it works for 2009 and 2010.

For starters, the maximum amount of the credit has increased from $1,800 to $2,500 per year, per student. And its available for four years of college, not just the first two like the old Hope credit.

Finally, many more middle-class families will benefit. While those with high incomes still wont qualify, the income limit has been increased by 60 percent. For example, married couples can now make $160,000 before this tax break starts to disappear.

Remember, a tax credit increases your refund, or cuts the amount of tax you owe, dollar for dollar.

And, if your credit is bigger than your total tax bill for the year, the government will cut you a check for the difference, up to $1,000.

The American Opportunity credit doesnt replace two other education tax breaks, the Lifetime Learning Credit and the tuition deduction. But for most families, the new credit is the best choice.

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Youve probably noticed lots of good deals on new cars these days.

Even the federal government has a special offer.

Buy a new car between February 16th and December 31st of 2009, and youll probably get to deduct the cars sales tax on your tax return. The same deal applies if you buy a small truck -- or a not-so small SUV or motor home . a even a motorcycle.

Heres how it works:

Lets say you buy a car for $28,000 about the national average price for new cars. If you pay 6 percent sales tax, thats $1,680. And that $1,680 can be written off on your tax return.

So whats that worth?

Most middle-class folks would save between $250 and $420.

Remember:

You must buy a new car, used cars dont count

Higher-income taxpayers wont qualify, but a married couple can earn more than a quarter of a million dollars before having to worry about losing this break.

You can take the deduction even if you file a simple tax return and claim the standard deduction.

You can spend as much as you want, but you only get to deduct the tax on the first $49,500 of the purchase price of each new car you buy this year.

And, finally, if you normally itemize and deduct sales taxes instead of state income taxes, this new deduction doesnt give you anything extra.

The tax write off isnt enough to send people scurrying to a dealership to buy a new car.

But it certainly can make a good deal even better.

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You can't argue with Madison's numbers. The Wisconsin city has a long track record of low unemployment, and its jobless rate is currently three percentage points below the national average. This city also wins for its low crime rate, first-rate public schools and a ready-made economy that feeds off of its two largest assets: The University of Wisconsin (and its expanding research centers) and the Wisconsin state capital.

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Olympia is a cultural diamond in the rough of the Pacific Northwest. Mischaracterized sometimes as a sleepy government town, Washington's state capital -- just 60 miles southwest of Seattle on the southern tip of Puget Sound -- enjoys a thriving visual and performing-arts scene.

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It's nicknamed the Classic City for both its name and its neoclassical architecture, but Athens, Ga., is anything but old-fashioned.

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Thomas Jefferson would be proud of how his hometown has grown up. The Renaissance man laid the foundation for what has become a well-rounded city.

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For better or worse, the federal government is big and getting bigger. And for the Washington, D.C., area economy, that means for the better.

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What Albuquerque wants, Albuquerque gets -- and the city and state crave high-tech jobs, especially in the renewable-energy industry.

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Talk about a bulletproof economy. This northern Alabama city represents critical mass for the nation's missile-defense and aerospace industries.

visit http://www.kiplinger.com/money /bestcities/ to see our full list of cities and more walking tours

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Richard Florida explains why choosing the right city is important to your financial future and how his creative class and lifestages were used in selecting the Kiplinger/Richard Florida 2007 25 Best Cities.

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One way to pocket extra cash is to tap financial assets you already have. There are some downsides, but this could be the rainy day youve been saving for. For example, if you have whole life insurance—the kind that builds up cash value inside the policy—you can borrow up to the full cash value. And you dont have to repay the loan. If you dont, the death benefit will be reduced by an equal amount. Despite tighter lender standards, you may still be able to tap your home equity. Loans and lines of credit are still available at attractive interest rates, as long as you have more than 20% equity in your home, steady income and a credit score of about 720 or higher. If you have a Roth IRA, you can withdraw your contributions—but not your earnings—tax free and penalty free at any time. Just remember, youll sacrifice any future growth of the money you withdraw. Getting a tax refund this year? Those checks are nice, but why let Uncle Sam hold on to your money for a whole year and pay you 0% interest? And why wait until next spring to get your money? Instead, adjust your withholding to put more cash in your pocket right now. Use our handy calculator at Kiplinger.com to see how much you could gain.

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