Federal Tax Credits Extended for 2011

Receive 10% of The Cost, Up To $500 by December 31, 2011
There's never been a better time to make energy efficient upgrades. The federal tax credit can be combined with state and utility incentives.

As of Dec. 17, 2010 the federal energy efficiency tax credit has been extended through 2011, but the federal government has significantly changed the credit limits and eligibility requirements.

For measures installed between January 1, 2011 and December 31, 2011, the credit is no more than 10% energy efficiency improvement costs, up to a maximum of $500. Special credit limits have been put on certain qualifying equipment. For example:

• High efficiency furnaces and boilers – $150
• Air Conditioners and heat pumps - $300
• Main air circulating fans – $50
• ENERGY STAR Windows – $200
• Energy efficient water heaters – $300

The $500 cap will apply to anyone who received the credit from Jan. 1, 2005 to present. Thus if you’ve claimed a cumulative credit of $500 or more of the tax credit since Jan. 1, 2005, you won't be eligible for the 2011 extension. If you’ve claimed less than $500, you are eligible for the difference with qualifying measures. See tax credit specifications.

Certain renewable energy tax credits for solar PV, solar hot water, and geothermal, for example, remain in place.