With holiday parties, gift shopping and New Year’s Eve right around the corner, the last thing on your mind right now is your 2011 tax returns. But the next few days may be your last chance to get a tax break for replacing your furnace or insulating your attic: Up to $500 worth of federal tax credits for home energy efficiency improvements are set to expire Dec. 31.
Here are some of the home energy upgrades that are eligible for tax credits until the end of the year:
1. Windows, doors and skylights
2. Insulation and air sealing
3. Roofs
4. Heating and cooling equipment
To cash in on these tax credits, you’ll need to make sure the qualifying energy efficient equipment is placed in service – that is, purchased and installed – by Dec. 31. You also must own the home where these upgrades are taking place, and it has to be your primary residence; new homes and rental properties do not qualify.
Note that there is a $500 lifetime limit for energy efficiency tax credits, so if you received over $500 in these tax credits from 2006-2010, you are not eligible for any more credits on your next tax return.
For much more detail, read “Green Tax Credits That Expire on Dec 31” on Earth411.com. And thanks to loyal reader Nicki for sharing the article.
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