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Do the 2011 federal tax credits help me?
The tax extender bill passed by Congress in December of 2010 does provide federal tax credits for energy efficiency improvements. How does this relate to heating and cooling?
Tax Credit Details for Your Primary Residence
- 2011 Tax Credit for Traditional Heating and Cooling Improvements:
Homeowners may be able to claim tax credits equal to 10% of the installed costs (up to $500) on qualifying equipment.
- Term:
The new tax credits are from January 1, 2011 and expire on December 31, 2011... excluding geothermal improvements.
- Continued Geothermal Tax Credits:
Homeowners who install qualifying geothermal heat pump systems can claim a federal tax credit of 30% of the installed costs... NO LIMIT! This credit must be claimed during the year the system is placed into service. The $2,000 tax credit limit has been removed. The geothermal tax credit has a longer term, from January 1, 2009 and expires December 31, 2016.
- Lifetime Limit Reinstated:
The lifetime limit of $500 has been reinstated. Homeowners who have claimed energy efficiency tax credits of $500 or more since January 1, 2006 are NOT eligible for the 2011 federal tax credit.
Questions? Let us answer the most frequently asked federal tax questions.
Still not sure if you qualify for the federal tax credit?
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