We are currently researching and gathering information on tax incentives for 2012 and will have details posted soon!

Last year's incentives...

ENERGY-EFFICIENT HOME IMPROVMENT TAX INCENTIVES EXTENDED FOR 2011

but at greatly reduced rates

The 2009-2010 tax incentives for upgrading home energy efficiency improvmentes (including oil burning heating systems) expired on December 31, 2010. However, President Obama signed a huge tax-cut bill in late December that extends these credits through 2011, but at a generally lower rate of only up to 10% of their cost, or a cap of $500. (The 2009-2010 tax incentives allowed an incentive of 30%, or up to a cap of $1,500.)

 Helpful Links and Information

IRS: Energy Incentives for Individuals in the American Recovery & Reinvestment Act.

 

HVAC: Information on HVAC tax credits from HVACtaxcredits.com.

 

US Department of Energy: Information about Tax Credits.

 

Mass Save: Savings through energy efficiency.

 

Smart of Money: Information on products eligible for energy tax incentives.

 MEDIA COVERAGE  

 Los Angeles Times

December 26, 2010

 

New federal law guts tax credits for energy-efficient home improvements

The measure slashes the credits from 30% of the cost to just 10% with a $500 maximum. It also clamps dollar-specific limits on items that had previously been eligible for 30% credits.

By Kenneth R. Harney

Reporting from Washington —

 

The $858-billion federal tax bill signed into law by President Obama on Dec. 17 was a mixed bag for American homeowners, with elements of both the Grinch and Santa squeezed into the same bulging package.

 

The goodies for select groups were well-publicized — unemployment benefits extension, payroll tax cuts, continuation of the Bush income tax rates and favorable estate tax treatment for wealthy individuals, among others. The bill even pushed back the expiration date for the tax deductibility of mortgage insurance premiums for another year.

 

But other provisions in the bill could be bad news for homeowners interested in remodeling projects to conserve energy next year. The legislation slashed the popular tax credits for energy-efficient remodeling from 30% of an improvement's cost ($1,500 maximum per taxpayer) to just a 10% credit with a $500 maximum for expenditures on insulation materials, exterior windows and storm doors, skylights, and metal and asphalt roofs that resist heat gain.

 

The bill also clamped new dollar-specific limits on key improvements that previously had been eligible for 30% credits. These include a $150 tax credit limit on the costs of energy-efficient natural gas, propane and oil furnaces, and hot water boilers, plus a $300 credit limit on the costs of central air conditioning systems, electric heat pump water heaters, biomass stoves for heating or water heating, electric heat pumps, and natural gas and propane water heaters.

 

The legislation also limits tax credits for energy-efficient windows installed during 2011 to a total of just $200 — down from the previous $1,500. On top of this, it prohibits taxpayers who have taken total tax credits in past years exceeding $500 from claiming any additional credits on energy-conservation projects they undertake in the coming year.

 

The net effect of all this, say home building and remodeling experts, will be to severely diminish consumers' interest in energy-efficient home improvements. Donna Shirey, chairwoman of the Remodelers Council of the National Assn. of Home Builders and president of a contracting firm in the Seattle area, said the gutting of energy-efficiency credits "is a big step backward. It's bad for the environment, bad for consumers and, of course, bad for jobs in our industry. We're heading the wrong way here, sending absolutely the wrong message."

 

 

 

Columbus Telegram

December 27, 2010

 

Homeowners looking to make upgrades on Uncle Sam's penny have another year to do so, thanks to an extension of the home energy-efficiency improvement tax credits.

 

The extension, which was included in legislation that renewed Bush-era tax cuts, allows individuals to receive tax credits for installing qualifying energy-efficient windows, doors, water heaters, roofs, insulation, heating and air-conditioning units and biomass stoves at principal residences.

 

However, those who aim to take advantage of larger savings must act quickly, as the extension calls for a significant reduction in tax-credit amounts from this year.

 

For installations occurring before year's end, the program offers a tax credit equaling 30 percent of the homeowner's cost, up to $1,500. This includes labor expenses on water heaters, heating and air-conditioning units and biomass stoves.

 

Next year the cap will be reduced to $500, and credit percentage will vary depending on what improvement is made. The tax credit is also retroactive to Dec. 31, 2005, meaning a homeowner who has claimed at least $500 in energy-efficiency tax credits between 2006 and 2010 can't do so in 2011.

 

Do-it-yourselfers may still have time to make some qualifying improvements before Saturday, but the opportunity to have a professional do the work has most-likely passed.