Do you deserve a $500 tax credit? Depends. Did you make any energy-saving home improvements in 2011?
Replace drafty windows or doors with energy efficient ones? Install a high-efficiency shower head? Swap an old wood-burning furnace for a new Energy Star furnace? Insulate your water heater? Install a digital thermostat?The list goes on.
Take a look and see if you home improvement project qualifies for the Nonbusiness Energy Property Credit.
The NEPC credit rate for 2011 is 10% of the total cost for “qualified energy efficiency improvements,” but the credit maxes out at $500.
If you plan on claiming the credit, the qualifying energy-saving improvements must be:
1. Located within the U.S.
2. Installed in the taxpayer’s principal residence
3. Installed and working before Jan. 1, 2012