You may have heard the buzz about energy tax credits increasing a couple years ago for items such as window replacement to geothermal HVAC. There have been a few changes in the tax code for 2011.
For energy upgrades to existing houses, the $1500 credit that you have seen windows suppliers and insulation installers advertising was set to expire December 31, 2010. Many contractors saw a rush of clients at the end of the year take advantage of this expiring credit. The good news is that the credit was extended for another year, however it is for 10% of the cost up to $500 for this year.
There is good news though, if you live in the city of Atlanta and are a GA Power client you can get up to $4000 for similar improvements. However, you must go through a home performance contractor that is part of the program to get these rebates.
The other good news is that the renewable energy federal tax credit is still good through 2016. This applies to qualified products like geothermal HVAC, solar hot water, photovoltaic, and wind power. You get 30% off the installed cost without a cap on your federal tax return. The tax credit for the state of GA does expire this year and once the 2.5MM in the fund is exhausted, it will not be renewed.
While most of the credits and rebates mentioned benefits existing homes only, new construction clients can benefit the greatest if they install renewable energy. New homeowners can get the 30% credit on items such as geothermal HVAC and solar when building new homes.