Residential Energy Credits
Am I eligible for the nonbusiness energy property credit?
You may be able to take the credits if you made “energy saving improvements” to your home located in the US in 2010. Energy saving improvements may include any of the following:
- Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home when installed in or on such a home.
- Exterior doors (including certain storm doors)
- Exterior windows (including certain storm windows) and skylights
- Any metal roof with appropriate pigmented coatings or asphalt roof with appropriate cooling granules that are specifically and primarily designed to reduce the heat gain of your home and the roof meets or exceeds the Energy Star program requirements in effect at the time of the purchase or installation
- Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural gas, propane, or oil water heaters; and stoves that use biomass fuel
- Qualified natural gas, propane, or oil furnaces and qualified natural gas, propane or oil hot water boilers
- Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces
How much of a credit will I receive?
You may be able to take a credit of 30% of the costs paid or incurred in 2010 for any qualified energy efficiency improvements and any residential energy property. The credit is limited to a total of $1500 over tax years 2009 & 2010.
What are the changes for 2011?
For 2011, the Residential Energy Credit has changed. The Energy Credit is limited to $500 and provides for 10% of costs incurred as compared to 30% in 2010.