Website design By BotEap.comIn 2010, Congress promised significant tax credits for homeowners who make energy-efficient improvements to their homes. While these breaks are down a bit for 2011, there are still numerous ways you can save by making sure your upgrades meet energy efficiency standards.

Website design By BotEap.comFor 2011, the maximum tax exemption you can receive for energy efficient home improvements is $ 500, reduced from a limit of $ 1,500 in 2009 and 2010. The law has also set a limit on the amount you can claim for specific projects.

Website design By BotEap.comDespite these cuts, it is still important to know what is still available to you. With the remaining credits, it is still possible to find substantial savings on your tax bill.

Website design By BotEap.comConsidering claiming energy savings tax credits? Here are some things you need to know

Website design By BotEap.com1. Be aware of the maximum existing credit.

Website design By BotEap.comThe maximum credit of $ 500 applies to the life of the taxpayer. It is not an annual limit, nor is it applicable to the property itself. Therefore, for those who claimed $ 500 or more since 2006 (the year the credit was available), it is not possible to claim more tax breaks for energy efficiency improvements.

Website design By BotEap.com2. The tax credit is restricted to primary residences.

Website design By BotEap.comThe energy efficiency tax credit cannot be applied to any property other than your primary residence. This exclusion includes second homes and businesses.

Website design By BotEap.com3. Look for the Energy Star designation.

Website design By BotEap.comGenerally, home improvements, such as windows, insulation, and heat pumps, will qualify for the credit, as long as they have an Energy Star designation. Energy Star is a joint program of the US Environmental Protection Agency and the Department of All products with Energy Star designations must meet strict energy efficiency guidelines established by the EPA and the US Department of Energy.

Website design By BotEap.com4. Not all Energy Star products qualify for the federal tax credit.

Website design By BotEap.comMany taxpayers assume that they will be eligible for the federal tax credit for purchasing an Energy Star appliance. However, while these products can help lower your energy bill, they do not always qualify for the energy efficiency tax credit. Ineligible appliances include refrigerators, washer-dryers, ovens, ceiling fans, light fixtures, and air conditioners.

Website design By BotEap.comHowever, while such products may not be eligible for the federal tax credit, they may still qualify for a state rebate. In fact, last year, 36 states offered rebates to residents who purchased Energy Star products.

Website design By BotEap.com5. It is still possible to claim credit for improvements made in 2009 and 2010.

Website design By BotEap.comEnergy efficiency improvements made in 2009 and 2010 may still qualify for the tax credit. If you couldn’t claim the credit for the year the upgrade was completed, it’s still worth it – upgrades made in those years are still eligible for a maximum lifetime credit of $ 1,500.