Many people will be taking advantage of the 2010, tax incentives for energy efficiency by purchasing windows, doors, and other products that improve the energy efficiency of their homes. Professionals within the building industry have reported an increase in the number of home owners who have invested in energy efficient projects for their homes.
The tax incentives for energy efficiency; allows people to claim up to 30% of their cost or $1500. This tax incentive was given to homeowners who had these projects done sometime in 2010. Many people are unaware that this tax credit was offered, and haven’t taken advantage of it. This credit is offered for any home improvements that involve energy efficiency such as; solar power, double insulated windows, insulated doors, or energy efficient water heaters and heating systems.
In 2011 the tax credit for home improvement will be reduced and the items that qualify for a deduction. will be limited. The tax credit of 2011 is different in that you can only claim up to 10% of your investment for any home improvement or a max of $500.00. The window for this text credit will expire on December 31, 2011. To qualify the home improvement tax credit it must be on an existing property or the primary resident.
The products that are eligible for the 2011 home improvement tax credit are similar to the products that were done in 2010. Here is a list of some of the products that are eligible for the tax credit in 2011.
- Medal and asphalt roofs
- HVAC items such as: propane and gas furnaces, boilers, central air conditioning units, forced heat pumps, and advanced air handlers.
- Insulation can be claimed as well like: spray foam, fiberglass and blow-in cellulose.
- Water heaters
- Energy efficient doors and windows.
*The cost of installation on some of these items will not be included.
For more information regarding the eligibility of your projects for the tax credit, be sure to check on the government web site. In order to claim the 2011 tax credits you need to apply in 2012 when you submit your 2011 taxes. Just remember that the item you’re claiming has to have been purchased and installed in 2011. To make things easier come tax time remember to keep all of your receipts and any other paper work that will serve as proof of your investment.