Tuesday, 20 September 2011 00:06
If you are planning on fall home improvements, there are certain improvements that may qualify for tax credits. They must be for an existing home and your principal residence. For 2011 these credits have been reduced by the Tax Relief, Unemployment Insurance Reauthorization and Jobs Creation Act of 2010 signed by the President on 12/17/10. The maximum lifetime credit limit is now $500 (was $1,500 for years 2006-2010) and if a credit of at least $500 was taken in prior years there is no eligibility for anything more in 2011. The energy tax credit is as follows:
10% of costs of insulation, roofs and doors up to a maximum of $500
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
There is also a tax credit of 30% (expires 12/31/16) of cost, with no upper limit for existing homes and new construction (both principal residences and second homes qualify), for geothermal heat pumps, small wind turbines (residential), and solar energy systems.