Homeowners that make changes to their homes in order to make them more energy efficient are eligible for many types of tax credits. These tax credits are given on a federal and state level, and are continually subject to change based on government funding. To this end, it’s important to stay up to date on your energy tax credit information for 2011.
The federal government has extended many tax credits from 2010 into 2011, making it easier for homeowners to invest in upgrades that improve the efficiency of their homes. For example, many modern and energy efficient appliances are eligible for rebates and tax credits, making them more affordable. Energy appliances available for credits include washing machines and dryers, dishwashers and, believe it or not, energy efficient fireplace inserts, fireplaces and stoves. Be sure the appliances you purchase are energy star rated (we can help you with that); to be sure you get your tax credit. Similarly, HVAC systems and renewable energy system installations are also subject to rebates and tax credits. Many credits have been reduced, but it is still possible to get tax credits on home upgrades including updated windows, gas furnaces, and boilers. Many of these home improvements are costly, and require expensive installation. Specific credits provide incentives for many of these home improvements making them more affordable for homeowners.
If you are considering any home improvements that will upgrade your energy efficiency, be sure your information is completely up to date. While word on the street is the government is most likely extending these incentives into 2012, we never know until it actually goes into law. With this in mind, if you are ready to make an improvement to your fireplace or stove, now is the time so you can take advantage of these incentives before they are gone.