Residential Energy Efficiency Tax Credit

Incentive type: 
Energy Efficiency
Technologies: 
Biomass Stoves, HVAC, Insulation, Roofs, Water Heaters, Windows and Doors
Date: 
Expiration Date: December 31, 2011
Sectors: 
Residential
Amount: 

30% tax credit of cost up to $1500.00 for improvements made before December 31, 2010

30% tax credit of cost up to $500.00 for improvements made before December 31, 2011

Contact Information: 
Public Information - IRS
U.S. Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, DC 20224

Phone: (800) 829-1040 
Web Site: http://www.irs.gov

The Residential Energy Efficiency Tax Credit was recently amended and extended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.  The deadline for claiming the tax credit was extended through December 31, 2011, however the cap was reduced from $1,500 to $500.  If a taxpayer claimed $500 or more of these tax credits in a previous year, purchases in 2011 will not be eligible for a tax credit. 

If you purchase an energy-efficient product for your home, you may be eligible for a federal tax credit. 

Tax credits are available for biomass stoves, HVAC systems, insulation, roofs, water heaters, and windows and doors.  For specific details on eligible products, please view the program webpage

Please note, not all ENERGY STAR qualified products qualify for a tax credit. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.

The tax credit for energy efficiency is available for improvements made to a home that you own and use as your "principal residence." This is the home where you live most of the time. A temporary absence due to special circumstances, such as illness, education, business, military service, or vacation will not change your principal residence.

For information regarding renewable energy tax credits, click here.