“Marvin, Pella, Andersen, or Thompson Creek: which window manufacturer makes the best windows?” asked many area homeowners last year. Did the panoply of new windows -- and the number of people ringing your bell to install them – become a pane in 2009 and 2010 when Congress allowed a 30-percent tax credit for making energy-saving home improvements? Congress told the IRS to give homeowners who installed qualifying windows, doors, water heaters, furnaces, insulation, roofing, and other highly energy-efficient items up to $1,500 in tax credits.
If you didn't take advantage of the tax gift and you want to make energy-efficiency upgrades, don’t fret. In December 2010, Congress passed a tax-law change that extends the credit through 2011, but with a much lower amount. Instead of a 30-percent credit, the IRS will allow a 10- percent credit, up to $500. Tax payers who received more than $500 in energy tax credits from 2006-2010 are not eligible for any more.
Highlights of 2011 Tax Credits:
- A10-percent tax credit, up to $500, for insulation, roofs, and doors
- New Energy Star windows, capped at $200
- Furnaces and boilers capped at $150 – must meet 95 AFUE rating
- $50 for advanced main air-circulating fan
- $300 for air conditioners, air-source heat pumps, water heaters, and biomass stoves
Homeowners may still take advantage of tax credits for installing these energy-efficient appliances and systems:
- Geothermal heat pumps
- Small, residential wind turbines
- Solar energy systems
Tax payers will receive a 30-percent credit, with no upper limit, for installing these appliances in their principal residences or second homes. Rentals do not qualify. These tax credits expire Dec. 31, 2016.
The law varies for installing residential fuel cells and microturbine systems. A homeowner may claim a tax credit for 30 percent of the cost, up to $500 per 0.5 kilowatt of power capacity. A new and existing home will qualify. The equipment must be used in a principal residence; a second home or rental will not qualify. This tax credit also expires Dec. 31, 2016.
For more information, visit www.energystar.gov/taxcredits and consult your tax advisor.
