2011 Federal Tax Credit for Consumer Energy Efficiency

On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This law extends the tax credits for energy efficiency into 2011, BUT at lower levels. The levels revert back to those in effect in 2006 and 2007, which were 10% of the cost of the improvement, up to $500, with a $200 max for windows, and several other set maximums.

Highlights:

• 10% up to $500 for insulation, roofs, and doors.
• Windows capped at $200, but qualification now ENERGY STAR
• Furnace and boilers capped at $150, and all furnaces and boilers must meet 95 AFUE
• $50 for advanced main air circulating fan
• $300 for air conditioners, air source heat pumps, water heaters, and biomass stoves 
• $500 lifetime limit. If you got over $500 in these tax credits from 2006-2010, you are not eligible for anything more.

Expires: December 31, 2011

Details: Must be an existing home & your primary residence.  New construction does not qualify.

For Insulation, the Tax Credit does not include installation costs.

For products placed in service in 2011, you will need to file the 2011 IRS Form 5695 and submit it with your 2011 taxes by April 15, 2012.

Save your receipt and the Manufacturer’s Certificate Statement for your records.

For complete information, visit www.energystar.gov/taxcredits.