The holidays are over and as we find the odd Christmas ornament forgotten around the home we are reminded that this jolly season ends in tax season. Whether you are looking forward to a tax return or procrastinating until April 18, 2011 (yes, the IRS has extended the deadline to the following Monday), you can start planning to get a better tax break next year after enjoying energy savings throughout 2011. 

The Best "Energy Efficiency" Tax Credits

The best tax credits ran from 2008 to 2010, so if you completed qualifying home improvements on or before December 31, 2010 make sure you include them in your filing this year (check out Form 5695 for residential credits at http://www.irs.gov/pub/irs-pdf/f5695.pdf). Regulations through this time give residents a 30% credit for costs up to $1,500. For more details about how the Federal Tax Credits for Energy Efficiency apply to 2011, go to http://www.energystar.gov/index.cfm?c=tax_credits.tx_index.

New "Energy" Tax Credits You Should Know About

The new regulations expiring on December 31, 2011, give a credit for the following upgrades to your primary residence (not including new or rental homes):

• Biomass stoves ($300 credit)

• HVAC (credit ranges from $50 to $300 depending on modification)

• Insulation (10% of the cost, $500 cap)

• Metal and asphalt roofs (10% of the cost, $500 cap)

• Non-solar water heaters ($300 credit)

• Windows and doors (10% of the cost, $200 cap).

The Energy Star link above will provide requirements to claim each credit.

The credit amount may be reduced, but that does not mean they should be ignored; the savings on regular bills alone will make the modifications worthwhile. For those getting refunds, this is the perfect opportunity to invest in your home. We will examine these home improvements in more detail over the next month to help you start planning to make 2011 a more energy efficient year.

Image by Filomena Scalise.