Personal (Nonbusiness) Energy Property Credit

Taxpayers can claim a credit for certain home improvements placed in service in 2011.  This credit for personal energy property was also available for qualifying improvements placed in service from 2006-2010, except for 2008.

Allowable Credit:

The credit is equal to 10% of the cost of qualified energy-efficient property or improvements.

The credit is limited to (1) $50 for each advance main air circulating fan; (2) $150 for each natural gas, propane or oil furnace or hot water boiler and (3) $300 for each item of: (a) electric heat pump water heaters, (b) electric heat pumps, (c) biomass fuel stoves, (d) high-efficiency central air conditioners or € natural gas, propane or oil water heaters.

The total amount of credit than can be claimed in 2011 combined is $500 ($200 for exterior windows and skylights).  This amount is reduced (but not below zero) for any credits claimed in 2006-2010.

There are no AGI or income limits so all individuals can claim the credit.

For 2011, the credit can offset regular tax and AMT.

The credit is reported on Part I of Form 5696, Residential Energy Credits.

Personal Energy Property Credit - Qualifying Property 2011
Product	Energy Requirements	Maximum Credit  Per Item
Advanced Main Air Circulating Fan	Must use no more than 2% of the furnace's total energy	$50.00
Air Source Heat Pump	1)Split systems: HSPF ≥ 8.5; EER ≥ 12.5; SEER ≥ 15.	$300.00
	2)Package systems: HSPF ≥ 8; EER ≥ 12; SEER ≥ 14.	$300.00
Biomass Stove	Thermal efficiency rating of at least 75% as measured	$300.00
	using a lower heating value.
Central Air Conditioning	1)Split systems: EER ≥ 13; SEER ≥ 16.	$300.00
	2)Package systems: EER ≥ 12; SEER ≥ 14.
Electric Heat Pump Water Heater	Energy factor ≥ 2.0. All ENERGY STAR qualified electric	$300.00
	heat pump water heaters qualify.
Gas, Oil or Propane Hot Water Boiler	AFUE ≥ 95	$150.00
Gas, Oil or Propane Water Heater	Energy factor ≥.82 or a thermal efficiency of at least 90%	$300.00
Insulation	Must meet 2009 IECC (including supplements) prescriptive	$500.00
	criteria.To qualify, its primary purpose must be to
	insulate.Therefore, insulated siding does not qualify.
Natural Gas or Propane Furnace	AFUE ≥ 95	$150.00
Oil Furnace	AFUE ≥ 95	$150.00
Roof(Metal & Asphalt)	Metal roofs with appropriate pigmented coatings &	$500.00
	asphalt roofs with appropriate cooling granules that also
	meet ENERGY STAR requirements.
Storm Windows & Doors	In combination with the exterior window/door over	$500.00
	which it is installed: has a U-factor and SHGC of .30 or
	below and meets the IECC prescriptive criteria.
Windows & Skylights	U factor ≤ .30; SHGC ≤ .30	$200.00
Source: www.energystar.gov	Thomson Reuters