Tax Tip Series: Energy Efficient Tax Credits

Individuals can still claim a nonrefundable credit for certain purchases made during 2011 for their primary residence. You may be entitled to the tax credit if you make energy-efficient improvements or have installed energy-efficient property to your home.  The credit is equal to 10% of the sum of the cost of qualified improvements, and the cost of qualified residential energy property. There is an aggregate cap of $1,500 in the case of property placed in service after December 31, 2008 and prior to January 1, 2011.

However, for 2011, the lifetime aggregate cap was reduced to $500.  Additionally, if you’ve taken the credits in the past, you’re not eligible for the credit on your 2011 taxes.

hensslervideo_tax