Take advantage of federal tax incentives when you make energy efficient upgrades in 2011. The federal tax credit can be combined with state and utility incentives.
Tax Credit Amounts for Specific Improvements
PLEASE NOTE: Only certain improvements at very specific efficiency levels are eligible. Visit ENERGY STAR to learn whether your plans will qualify for tax credits.
- Insulation - 10% of your costs up to $500
- High-efficiency furnaces and boilers – $150
- Air conditioners and heat pumps - $300
- Main air circulating fans – $50
- ENERGY STAR windows – $200
- Energy-efficient water heaters – $300
- Renewable energy systems qualify for bigger rebates, but we recommend that you install conservation systems first
The $500 cap applies to anyone who received an energy tax credit from January 1, 2005 to present. Thus if you’ve claimed a cumulative credit of $500 or more in energy tax credits since January 1, 2005, you are no longer eligible. If you’ve claimed less than $500, you are eligible for the difference with qualifying measures.
Details
- Energy efficiency improvements must be installed by December 31, 2011 (tax incentives for renewable energy systems extend through 2016).
- Energy efficiency improvements must be made at taxpayer's principal residence.
- $500 is the maximum total amount that can be claimed for all products placed in service in 2011. Qualifying renewables are not subject to this cap.
- Second homes qualify for renewable energy systems (geothermal heat pumps, solar water heaters, solar PV, and residential scale wind turbines). Tax credit amounts up to 30% of the entire cost of the renewable systems are available.
- Save your receipts and the "Manufacturer Certification Statement" (your contractor can supply this) for tax record keeping purposes.
- Improvements made in 2011 must be claimed on your 2011 taxes, filed by April 15, 2012.
- Rental properties do not qualify.
