Federal Tax Credits for Consumer Energy Efficiency

For 2011, tax credits are now available for energy-saving home improvements:

Energy-efficiency improvements must be installed from January 1, 2009 through December 31, 2011 (renewables go through 2016-Hint: go for efficiency first!)

For energy-efficiency, improvement must be for taxpayer's principal residence.

• For renewables (geothermal heat pumps, solar water heaters, solar PV, and wind) second homes and rentals qualify.

• $500 is the maximum total amount that can be claimed for all products placed in service in 2011 for most energy-efficiency improvements, but qualifying renewables are not subject to this cap.

• Save your receipts and the "Manufacturer Certification Statement" (your contractor should be able to supply this) for tax record keeping purposes.

• Improvements made in 2011 will be claimed on your 2011 taxes, filed by April 15, 2012.

Criteria for Energy-Efficiency Measures:  ($500 maximum)