Monday, March 7, 2011

The Residential Energy Credit survived for 2010, and it has been extended in limited form into 2011. However, in 2010 it is limited to $1,500, and if you took the credit in 2009, the amount you took in that year reduces the amount you can take in 2010. For example, if you took a credit of $500 in 2009, your limit for 2010 is $1,000.

The limit in 2011 is only $500, and all the Residential Energy Credits you have taken since 2006 go towards reducing that limit. The credit has also been limited somewhat in the things that it covers, but it will still be good for windows, doors, insulation, certain kinds of roofs, qualified furnaces, etc.

The credit is good for your main home only. It is not for property you rent out to others. Also the home must be located in the United States.