Washington, DC (July 27, 2011) -- The generous residential energy credit offered by IRS in 2009 and 2010 is no more. The maximum credit of $1500 has dropped to $500 for installation of energy savers in existing primary residences in 2011.
"Since no one knows whether or not there will be any credit at all to be claimed on many energy saving items in 2012, now could be the best time to move ahead with changes you've been considering to make your house more energy efficient," said Helen O'Planick, EA an enrolled agent in Manchester, PA.
For 2011, tax credits are available for:
Through 2016, tax credits of 30 percent of the cost, with no upper limit, are available for geothermal heat pumps, solar energy systems, wind energy systems and fuel cells. Vehicle tax credits are available for some vehicles.
These are only the federal credits—state, local or utility incentives may also be available that will put more money back in your pocket after making an investment in energy efficiency. Keep in mind, however, that the cap listed refers to the total amount of credits a homeowner may claim from 2006 to 2011, not just in 2011. If a homeowner has already claimed $500 or more under this credit, he or she may not claim any additional credit for improvements made in 2011.
About Enrolled Agents
Enrolled agents are tax professionals licensed by the US Department of the Treasury to represent taxpayers before all administrative levels of the IRS. While attorneys and certified public accountants are also licensed, only enrolled agents specialize exclusively in taxes. Enrolled agents are required to complete many hours of continuing education each year to ensure they are up-to-date on the constantly changing tax code and must abide by a code of ethics. To find an enrolled agent in your area, visit the website of the National Association of Enrolled Agents at www.naea.org and look for the "Find an Enrolled Agent" directory.