How to get energy tax credits in 2011
Feb 3rd 2011 1:00PM
Updated Apr 9th 2011 6:56PM
The levels and limits on these energy tax credits are lower than before; basically back to where they were when the incentives started in 2006-2007. But, if the energy saving home improvements covered are needed anytime soon, taking advantage of them is still very much worth your while, with the best deals in the bunch offered for components and systems that help you bring renewable energy into your life.Here's a quick rundown of eligible energy-saving improvements that get you credits if installed in your primary residence now through Dec. 31. Keep in mind that there's a $500 overall cap on the credits you can earn, and that the total is impacted by any related energy-efficiency credits you've earned in prior tax years (however, it doesn't affect the $1,500 limit that was available for 2009 and 2010).
Tax Credit: 10% of cost up to $500 or a set amount between $50 and $300
- HVAC equipment, including air source heat pumps, central air conditioners, advanced main air circulating fans, furnaces and boilers
- Insulation, including bulk products like batts and rolls, and air-sealing items such as weather stripping, caulk and house wrap
- Metal and asphalt roofing
- Non-solar water heaters
- Windows, doors and skylights (credits for windows are capped at $200)
- Biomass stoves with thermal efficiency rating of at least 75%
- Geothermal heat pumps
- Solar energy systems, including solar water heaters and solar panels
- Small residential wind turbines, with a nameplate capacity of no more than 100 kilowatts
- Fuel cells, with efficiency of at least 30% and capacity of at least .5 kW
Tom Kraeutler delivers energy saving tips and more each week as host of The Money Pit, a nationally syndicated home improvement radio program. He is also AOL's Home Improvement Editor and author of "My Home, My Money Pit: Your Guide to Every Home Improvement Adventure."