Final Year To File For Major Income Tax Credits For Energy Efficient Home Improvements
February 22, 2011 Kyriaki (Sandy) Venetis 
Graphic courtesy of taxresolutioninstitute.com.
Income tax season is here again and it’s time to start getting everything together – tax documents, receipts, and any other papers that can help you get a few more dollars back.
This tax season is especially important for anyone that has bought and installed energy efficiency devices, materials, or appliances in their home over the last two years. This will be the last time that you will be able to file for major tax credits (tax refunds) of up to $1,500 for these types improvements.
For any products that you buy this year and in the future, there will be a lifetime $500 tax credit cap. It’s a little complicated, but basically it means that no matter how much you pay for any home energy efficiency products this year, when the time comes to file taxes next year, the most you can get back is $500. For example, if you get a $400 tax credit this year, then next year when you file, the most you can get is $100.
The good news is that for filings that you make this year, the tax credit cap is $1,500. These tax credits only apply for your permanent residence (where you live most of the time).
The types of home energy efficiency devices, materials, and appliances that qualify for tax credits include:
- Windows, doors, and skylights.
- Insulation and home sealing products.
- Electric heat pump water heaters.
- Corn, pellet, and wood burning biomass stoves.
For any devices, materials, or appliances that you file on your tax returns for 2010, you should also have (for your own piece of mind) a manufacturer’s certification statement. This is a statement from the manufacturer saying that the product you bought qualifies for a tax credit.