Energy Efficient Improvement Credit
Prior to the 2010 Tax Relief Act, the credit for nonbusiness energy efficient property was at a credit amount of 30% of the expenditure for authorized property and the maximum lifetime credit was limited to $1,500. Some examples of qualified property include furnaces, water heaters, insulation material, and other items. Due to the 2010 Tax Relief Act, the energy credit will extend through the end of 2011, reducing the maximum lifetime credit of $500 and lowering the value of the credit to 10%. The Joint Committee on Taxation has not disclosed the separate cost of this provision. Individuals have been given an extra year to make energy efficient improvements, but now the lifetime credit has decreased to $500. Any individuals who have previously received a credit of $500 or more in 2006-2010 will not be qualified to receive any additional credit.
If you have any questions or would like more information, please contact Wood, Atter & Wolf, P.A., in Jacksonville and Ponte Vedra Beach, Florida.
