Energy Tax Credit

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the "tax extenders bill") passed Friday, December 17, 2010. The bill extends the IRS Section 25c tax credit for energy efficient retrofits to existing homes. The tax credit for installed insulation materials will be ten percent of the material cost up to $500.

Lifetime Limitation. The lifetime limitation on the tax credit reverts to $500 total for the years in which the tax credit has been available (2006, 2007, 2009, and 2010). So if a taxpayer claimed a 25c tax credit of at least $500 prior to 2011, they would not be eligible to make a tax credit claim in 2011.

Interested in upgrading your home's insulation? Contact a NICE Member!