ENERGY TAX CREDIT

Great News! The tax credit for energy-efficient home improvements has been extended!

The tax credit will be less in 2011 than it was in 2010 and 2009 – so if you can purchase your energy-efficient appliances now, do it now!

Most of the same products that were eligible for the 2010 home improvement tax credit are eligible for the 2011 version. The amounts on most have just been reduced and/or capped.

2011 Energy Tax Credit Details:

• The generous credit titled the 2009-2010 American Recovery and Reinvestment Act (ARRA) - was allowed to expire and was not renewed.
• The new energy efficient tax credit is only a 10% credit, up to a maximum of $500. The prior cap had been up to $1500.
• HVAC components, including advanced air handlers, air force heat pumps, central A/C units, boilers, propane, and gas furnaces. Tax credits include installation costs. $300 limit, must be 95% efficient.
• Water Heaters - Credit includes installation costs; some restrictions for energy efficiency apply. $300 max credit.
• Of the various programs you may take advantage of, the cap is $500 total IF you haven't taken advantage of the credit previously.
• Anyone that took advantage of the prior tax credits cannot utilize the credit in 2011 (no double-dipping).

If you’ve been thinking of upgrading to more energy-efficient equipment, do it now!