We are fast approaching the end of 2011, which also marks the end of the Federal Tax Credits for energy efficient products. From now until December 31, 2011 when you replace old, inefficient air conditioning and plumbing systems you can reduce energy output (lower utility bills!), help the environment, improve home comfort and receive a 10% tax credit, up to $500.
In 2009, when the American Recovery and Reinvestment Act created these energy efficient tax credits, they were set to expire the end of 2010. At the final hour they were extended through the end of this year. With the current state of the economy, however, experts doubt that this program will be extended again (or will ever exist again in our lifetime!).
The most significant change from the 2009-2010 tax credits involves a reduction in the cap from $1500 to $500. This cap is the total amount of credits a homeowner may claim between 2006 and 2011, not just in 2011. If a homeowner has already claimed $500 or more in credits through this allowance, they will be unable to claim new credits for improvements made during 2011.
Another change involves the amount eligible, which now varies by product. Click here for specific product information.
This is a perfect opportunity for anyone who has a heating and cooling system 5 years or older and has wanted to make a change and wants to save money! Also, we realize the tax stuff can be a little confusing, so contact
Thornton & Grooms and we can help you not only pick qualifying products, but also verify your savings.
Don’t forget - these federal tax credits will expire on December 31, 2011!