If you didn’t take advantage of last year’s energy tax credit, here’s what’s new for 2011:

I have good news and not so good news. Well, the IRS did extend the tax credit for January 1, 2011 through December 31, 2011 but the credit has reverted back to the lifetime caps from 2005. The maximum credit is $500.00. This means that if you have taken this credit in prior years, you may NOT be eligible to receive any additional credit if you have already taken $500.00 or more. The improvements must be on your primary residence – vacation or rental homes do not qualify.

You must also keep in mind that not every product will qualify for this credit. Below are some of the requirements and credit amount available:

Central Air Conditioners – 16 SEER and 13 EER = $300 credit
Heat Pumps: 15 SEER and 12.5 EER = $300 credit
Natural Gas Furnaces: 95% AFUE = $150 credit
Advanced Main Air Circulating Fan: ECM Blower = $50 credit
Ductless Split System Heat Pumps: 15 SEER, 8.5 hspf, 12.5 EER = $300 credit
Ductless Split System Air Conditioners: 16 SEER, 13 EER = $300 credit
Water Heaters: EF of 82+ = $300 credit
Boilers: AFUE of 95%+ = $150 credit

Please visit the energy star website to get more information on qualifying products: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index.

There is good news if you are considering geothermal heat. The credit for 2011 (for geothermal only) has remained at the previous 30% levels through December 31, 2016, and have no cap.

If you have questions about whether you will qualify for the credit in 2011, please consult your tax advisor.

Kristine Noland for
Jim Landis, Inc.
2/14/2011