Homeowners still have time to make energy-saving and green-energy home improvements this year and qualify for one of two home energy tax credits:
1) The Nonbusiness Energy Property Credit is aimed at homeowners installing energy efficient improvements such as insulation, new windows and furnaces.
• The 2011 credit rate is 10% of the cost of qualified
energy efficiency improvements.
• The credit has a lifetime limit of $500, of which only
$200 may be used for windows.
• Qualifying improvements must be placed into
service before January 1, 2012.
2) Homeowners going green should also check out the Residential Energy Efficient Property Credit, designed to spur investment in alternative energy equipment.
• The credit equals 30% of what a homeowner spends
on qualifying property such as solar electric systems,
solar hot water heaters, geothermal heat pumps,
wind turbines, and fuel cell property. Generally, labor
costs are included in this credit.
NOTE: Consult your tax advisor for complete details and information regarding these tax credits.