A tax credit is a nice, little break from paying income taxes. For 2011, the federal government is offering numerous tax credits that could help you to get some of the necessary home improvements done for less. The credits available for tax year 2011 are different from the previous income tax credits for 2010 or prior. This year, you will see a reduction in what amount you can receive as well as what qualifies for the tax credit.
2011 Tax Credit
The tax credits available to homeowners will provide different savings based on the types of home improvement projects you take on. The credit is for up to 10 percent of the cost of the home improvement, up to a maximum of $500. This credit expires on December 31, 2011. To be eligible, the improvement project must take place on an existing home that is also your principle residence. Take a look at some of the benefits you will receive.
- If you replace doors and windows with energy efficient models, you could save a maximum of $200 towards the tax credit.
- HVAC updates, including the use of advanced air handlers, central A/C units, propane systems, boilers, air forced heat pumps, and gas furnace upgrades that improve the efficiency of the model are eligible up to a $300 limit. These systems must be at least 95 percent efficient.
- Water heaters qualify for a credit up to $300. This includes installation costs. The new system must be energy efficient.
- Investing in a biomass stove for your home could help you to earn a $300 credit towards your taxes.
- If you update your roof to a metal or an asphalt version, this could help you to qualify for the home improvement credit.
An energy efficient home is now not only more inexpensive to use, but it is also inexpensive to install. There is no guarantee the federal government will extend these credits, so take advantage of them now.
