- 13 December, 2006 -

For those thinking of making improvements to a home or purchasing a car, being energy conscious can bring benefits to more than just the environment. Jackson Hewitt Tax Service?, an industry leader specializing in federal and state individual income tax returns, reminds consumers that certain energy- efficient purchases made before December 31, 2006, may qualify for tax benefits when it comes time to file a 2006 individual income tax return. "When considering home improvements or a new vehicle, it's important to keep in mind that new energy-focused tax benefits will be available when filing a 2006 return," comments Mark Steber, Vice President of Tax Resources, Jackson Hewitt Tax Service. "In addition to helping save vital natural resources and dollars off energy or gasoline bills, 'going green' in this case can also help consumers conserve their own resources at tax time." A Holiday Hybrid As automotive manufacturers and dealers ramp up their year-end sales, many consumers end up in the market for a new car during the holiday season. This year, those who consider "green" options such as hybrid or other alternative fuel vehicles may reap significant tax savings on 2006, if those vehicles are purchased before December 31, 2006. A maximum tax credit of $3,400 can be claimed on a 2006 tax return, provided that the taxpayer is the car's original owner. The legislation that includes this provision, titled the Energy Policy Act of 2005, notes that credits are available for tax years 2006 through 2010. However, taxpayers should be aware that the IRS has set credit amounts specific to each qualified vehicle and that some of these credits phase out based on quarterly sales. Consumers interested in learning more about vehicles that qualify can check with a local Jackson Hewitt tax professional for up-to-date information. Energy-Efficient Home Solutions For the Winter A second beneficial provision in the Energy Policy Act of 2005 focuses on encouraging energy-efficient changes made to principal residences in the United States. Taxpayers considering making certain energy-focused improvements to their homes should do so by December 31, 2006, in order to take advantage of credits such as the following: Insulation systems that reduce heat loss/gain, skylights, exterior doors and windows can offer a credit of 10 percent on the amount spent on improvements, up to a lifetime total amount of $500 Heat pumps, furnaces, and hot water heaters may qualify, but are subject to a 10 percent limit given that they carry their own individual dollar restrictions Solar water heating systems, solar panels and fuel cell power plants may also qualify "These new energy-efficient home improvement credits may be claimed on either 2006 or 2007 tax returns, and include several options that are particularly useful in winterizing a home," explains Steber. The maximum credit for all taxable years is $500 and no more than $200 of the credit can be used for window-related expenses. Taxpayers are encouraged to visit the Jackson Hewitt website (www.jacksonhewitt.com) for additional energy-efficient tax tips, as well as other valuable resources relevant to filing a 2006 tax return, such as: Tax resources and information about new tax laws A list of items to obtain and organize prior to having your tax return accurately prepared Information on the "Top Overlooked Deductions" and "Top Overlooked Credits" Deductions@Work? - a proprietary feature that lists job-related credits and deductions for more than 40 occupations The "What to Bring to Your Tax Preparer" Checklist Many Jackson Hewitt offices are currently open around the country to review previously filed tax returns or provide assistance with year-end tax planning. To find the Jackson Hewitt office nearest to you, call 1-800-234-1040. About Jackson Hewitt Tax Service Inc. Jackson Hewitt Tax Service Inc. (NYSE: JTX), with over 6,000 franchised and company- owned offices throughout the United States during the 2006 tax season, is an industry leader providing full service individual federal and state income tax preparation. Most offices are independently owned and operated. The Company is based in Parsippany, New Jersey. More information may be obtained at www.jacksonhewitt.com. To locate the Jackson Hewitt Tax Service? office nearest to you, call 1-800-234-1040. CONTACT: Allison Jackson Senior Manager, Communications Jackson Hewitt Tax Service Inc. 973-630-0681 allison.jackson@jtax.com Melissa Connerton CooperKatz & Company 212-455-8001 mconnerton@cooperkatz.com

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