Year End Tax Saving Ideas For Individuals – Residential Energy Tax Credits
By Residential Energy Tax Credits
If you haven’t taken advantage of energy tax credits for your home, 2011 is your last chance. The credits–10% of cost up to $500 or a specific amount from $50 – $300–expire on December 31, 2011 and only apply to improvements in an existing home that is your principal residence. New construction and rentals do not qualify.
The tax credits are as follows:
- 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)
Caution: Taxpayer is ineligible for this tax credit if this credit has already been claimed by the taxpayer in an amount of $500 in any previous year.