The American Recovery and Reinvestment Act made 2009 and 2010 a very good time for energy efficient home improvements. If you missed out on the tax break opportunity to upgrade your home, you’re not quite out of luck. Tax incentives for home energy efficiency has been extended into 2011, unfortunately, the incentives are not quite as sweet as recent years. Here is the rundown on the tax credits for this year:
2011 Energy Tax Credit
This tax credit has decreased to 10% of a project up to a $500 total. This includes product costs for insulation, doors, roofing, and other various home improvement project supplies. One notable thing is that this deduction does not apply towards the installation of these items, only towards the cost of the products themselves. Save money by doing installations yourself.
Energy Star Window Tax Credit
The credit for energy efficient windows is now up to $200, but less-efficient, and therefore less expensive, Energy Star windows now qualify.
Water Heater Tax Credit
The water heater tax credit includes electric, natural gas, propane or oil water heaters and there is a credit up to $300 available.
Air Conditioner Tax Credit
There is a tax credit up to $300 for approved, energy efficient air conditioning systems. The best way to find tax credit eligible central air conditioning units is to ask your HVAC contractor. We at Air Systems Services can provide resources to help you find the right unit for your home. We provide Manufacturer Certification Statements for all of the AC units we recommend.
Furnace Tax Credit
This $150 tax credit includes natural gas, propane, oil, or hot water furnaces. One stipulation is that the efficiency of the furnace, meaning the percentage of heat produced that is utilized by heating the home, must be 95%. This efficiency is higher than previous years, resulting in lower energy costs for your home.
One notable and unfortunate change is that if you have already taken advantage of the Energy Tax Credit, whatever you have claimed in the past counts against the $500 in 2011. This makes small home improvement projects less tax deductable. However, if you are considering any major investment plans, such as geothermal heat pumps, solar energy systems, fuel cells, or small wind turbines, you can take advantage of the 30% tax credit with no maximum amount until 2016.
Although the incentives may not be as good as last year, home energy improvements are still a valuable investment. Not only do they help our planet and future, but they lower monthly bills and the savings adds up.
If you are considering any home improvement work in 2011, call us today for a free consultation on how we can help. Whether it’s a new energy efficient furnace, air conditioner or ventilation system, we can assist in designing a cost effective system and choosing the right products for your home. We also provide renewable resource information for investments such as geothermal heat pumps, which are still eligible for the 30% tax credit. Call us at (919) 266-5755, or fill out a consultation form on our website to get started, or schedule a service online by clicking here.