Energy Tax Credits 2011 - There are new IRS credits this year for homeowners who install new windows, hot water heaters and better insulation. These tax credits for are the fiscal 2011 year and have everything to do with energy efficiency. However, keep in mind that they are not half of what they used to be, and you might even be surprised on how low they really are.
The energy tax credits 2011 are not like the ones from 2009 and 2010. Those were generous as they were part of the American Recovery & Reinvestment Act, and were created to help spur the economy through people making home upgrades to get the credits. These credits were actually extended as part of the Obama tax cut deal, but now that we’ve ‘recovered’, the generosity trails off a bit.
They drops to 10% of a project and they are $500 max. For comparison, last year’s credit capped out at 30% of a project up to a max of $1,500.
- Energy Star window tax credit: up to $200 maximum.
- Water heater tax credit (includes electric, natural gas, propane, or oil): up to $300 maximum.
- Air conditioner tax credit: up to $300 maximum.
- Insulation, doors, and roof credits: up to the $500 cap.
- Furnace tax credit (includes natural gas, propane, oil, or hot water): $150 maximum. Efficiency must be 95% (up from 90% before the extension).
The big kicker: If you’ve already taken advantage of the Energy Tax Credit, whatever you claimed in the past counts against the $500 in 2011. So, before you buy anything, make sure your product qualifies. However, most people are doing it to save their electricity bill each month, which can be a good thing.
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