Several tax breaks are on the books for 2011 but may be gone next year unless they are extended by Congress. One of them is the small energy credit.
- What it is: Credit of up to $500 total and $200 for windows for the installation of energy efficient doors, windows, furnaces and air conditioning units, to your main home (includes boats, motorhomes, condominiums) if the items are installed before 2012. This credit is reduced by the amount of energy tax credits taken from 2006-2010.
- Who it applies to: A homeowner who has not taken full advantage of the energy savings tax credit.
- Benefit: A direct reduction in tax up to the amount of the credit.
- What you can do if this applies to you: Accelerate the purchase of qualified energy efficient doors, windows, furnaces, and air conditioning units and have them installed by December 31, 2011.
If you feel this situation applies to you, post a comment below or contact our Tax Planning & Preparation Group to review your individual tax position.