2011 Energy Tax Credits are not as much as they used to be, but there are still energy tax credits to be had for upgrades made in 2011.
if you upgraded to one or more of the following systems in 2011, you may be eligible to take a tax credit on your 2011 returns.
The energy tax credits are small, but at least a credit is better than a deduction:
- Deductions just reduce your taxable income.
- With a credit, you get a dollar-for-dollar reduction in your tax liability: If you get the $500 credit, you pay $500 less in taxes.
Other limits on IRS energy tax credits besides $500 max
- Credit only extends to 10% of the cost (not the 30% of yesteryear), so you have to spend $5,000 to get $500.
- $500 is a lifetime limit. If you pocketed $500 or more in 2009 and 2010 combined, you’re not entitled to any more money for energy-efficient improvements in the above seven categories. But if you took $300 in the last two years, for example, you can get up to $200 in 2011.
- With some systems, your cap is even lower than $500.
- $500 is the max for all qualified improvements combined.
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