2011 Energy Efficient Home Retrofit Tax Credit (25C) Information


The 2010 Energy Efficient Home Retrofit Tax Credit (25C) has been extended into 2011, but there have been major changes to the incentives available to homeowners.

Modifications from 2010 were made, reducing the credit value to 10% of the installed costs with a maximum credit for all qualified retrofits of $500. The legislation also reinstates lifetime credit caps that disqualify any homeowner who has claimed more than $500 in 25C tax credits since Jan. 1, 2005, from any further credits.

2011 Exisiting Home Retrofit (25C) Info from NAHB.org:

Up to $500 can be claimed for all qualifying products placed into service by 12/31/11 for most home improvements. Tax credits are available at 10% of the installed costs with maximum credit of all qualified retrofits to $500, in 2011 for:

  • Windows and Doors
  • Insulation
  • Roofs (Metal and Asphalt)
  • HVAC
  • Water Heaters (non-solar)
  • Biomass Stoves

Improvements made in 2011 will be claimed on your 2011 taxes. Homeowners that have claimed more than $500 in 25C tax credits since Jan. 1, 2005 are disqualified from receiving further credits.

Also renewed were the New Energy Efficient Home Tax Credit (45L credit) from 2010 and extend it through the end of 2011. The section 45L tax credit is the only federal incentive available for efficiency in new home construction; about 10% of all new homes sold in 2009 qualified. The program provides $2,000 tax credits to builders and developers for the construction and sale of homes that achieve a 50% improvement in energy efficiency over the 2004 International Energy Conservation Code.

PLEASE NOTE that not all projects or products are eligible for tax credits. Be sure you to consult your tax advisor and check all of the guidelines to make sure your projects/products will fall within the required conditions to be eligible. The National Association of Home Builders and EnergyStar.gov/taxcredits are both excellent resources for information on the tax credit program, the eligibility guidelines along with qualifying product information.

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