Eligible Products

• Products eligible for energy credits through 2011 include 75-percent-efficient biomass stoves, along with certain energy efficient heating, air conditioning and ventilation systems. Installing insulation or a new roof can also qualify you for a tax credit. Nonsolar water heaters, as well as certain windows and doors also qualify for the energy efficiency tax credit.
  
  Only solar systems, wind turbine installations, fuel cell products, geothermal heat pumps and solar hot water heaters qualify for the energy credits that extend through 2016.
  
  

Tax Credit Limits

• If you received energy credits that totaled $500 or more from 2006 through 2010, you cannot claim additional tax credits for the items that expire in 2011. If you did not max out your energy credits, you can get a 10 percent credit for installing insulation, roofs and doors. If you install tax-credit-eligible windows, your credit is limited to $200. Furnaces and boilers must meet certain requirements to be eligible for the maximum $150 credit. If you install an advanced main air-circulating fan, your credit is limited to $50. Air conditioners, nonsolar water heaters, conventional heat pumps and biomass stoves qualify for a $300 credit.
  
  For those credits that do not expire until 2016, you can access a 30 percent credit for all costs associated with the systems, plus installation. There is no ceiling on the tax-credit dollar amount you can claim.
  
  

Claiming the Credit

• Claim your share of the energy efficiency credits by filling out the Internal Revenue Service’s Form 5695, available online at www.irs.gov or by calling the IRS at 800-829-1040. Attach the form to your federal income tax return when filing.
  
  

Considerations

• All products eligible for energy credits through 2011 must be used for your existing principal residence. You cannot use the credits for a second home or a rental. You can claim 2016 credits on both your principal residence and your second home. Rental properties do not qualify for these credits. Energy credits are nonrefundable; meaning they only work to reduce your tax obligation, not increase your tax refund. A manufacturer’s certification statement certifies the tax-credit eligibility of an energy efficient product.