Tuesday, June 21, 2011

The 2011 Home Energy Tax Credit

The 2010 Tax Relief Act extended the (IRC Sec. 25C) nonbusiness energy property tax credit through December 31, 2011 – one more year. However, stricter rules apply for 2011 than for 2010.

A taxpayer can claim a 10% credit for “qualified energy property” placed in service in 2011 up to a $500 lifetime limit. Oh yes, you have to reduce the $500 by any credits you claimed previously.

The credit for residential energy property expenditures are limited to:

(i) $50 for an advanced main circulating fan;

(ii) $150 for any qualified natural gas, propane, or hot water boiler;

(iii) $300 for any item of energy-efficient property (with no more than $200 from windows and skylights)

My take: Are you kidding?

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