In 2009 and 2010 installing a new energy-efficient heating and air conditioning system would have qualified you for as much as a $1,500 tax credit. Although 2011 does not offer the same savings, there is still some incentive to upgrade your system before the year’s end, USA Today reported August 22, 2011.
Tax credits for energy-efficient home improvements were extended by congress to run through 2011; however, maximum credits were dropped from $1,500 to $500. The amount you can claim on specific projects was also capped, with a new heating and cooling system saving you up to $300 and new windows up to $200.
The credit may only be applied once per person over the lifetime of the law, so a new home or a new project does not qualify you for another tax break if you have already taken advantage of the program in a previous year.
The savings may be modest, but there is no guarantee the credits will be extended again in 2012, so now is the time to take advantage.
To get more information on tax credit eligibility click here.