DAT Financial & Tax Service

Energy Tax Credits

Taxpayers can claim a credit for certain home improvements placed in service in 2011. The credit is equal to 10% of the cost of qualified energy-efficient property or improvements, but limited to:

-$50 for each advance main air circulating fan
-$150 for each natural gas, propane or oil furnace or hot water boiler
-$300 for each electric heat pump water heater, electric heat pump, biomass fuel stove, high-efficiency central air conditioner or natural gas, propane or oil water heater

The total amount of credit that can be claimed in 2011 combined is $500 ($200 for exterior windows and skylights). This amount is reduced for any credits claimed in 2006-2010.
Taxpayers may rely on manufacturers' certifications to be sure improvements qualify and should bring the certification statement to their tax appointment and retain it with their tax records.

Solar/Wind

A section of the new regulation relating to solar and wind energy equipment eliminates the cap on the credit of 30 per cent of the cost of qualified property and the equipment need only be installed at a residence (does not need to be the taxpayer's principal residence).

What qualifies?

The following links provide a chart of available residence energy credits with more specific links to detailed specifications and how to recognize compliance:

www.energystar.gov/index.cfm?c=products.pr_tax_credits#s1

www.dsireusa.org/summarytables

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