Eligible Products in 2011

• Heating and cooling tax credits that expire with the end of the 2011 tax year are limited to energy-qualified biomass stoves, central air-conditioning units, advanced main circulating fans, air-source heat pumps as well as natural gas, oil or propane water boilers and furnaces. Credits for these products only apply if installed in your existing principal residence. Installation of these produces in rental property and new construction does not qualify for the tax credit.
  
  

Eligible Products in 2016

• If you have not committed to a whole-house gas generator, you might consider other alternative means of providing for your home’s energy needs. Energy tax credits are available through Dec. 31, 2016, for the installation of geothermal heat pumps, small wind turbines and solar energy systems. There are also credits available until the end of the 2016 tax year for the installation and operation of a residential fuel cell and microturbine system. You can get tax credits for these products if installed in an existing home or new construction. These credits are offered for your principal place of residence or a second home. Rental homes do not qualify for the credits.
  
  

Energy Tax Credit Limits

• Tax legislation has imposed a $500 lifetime limit on federal tax credits associated with all energy-efficiency upgrades that expire at the end of 2011. If you received tax credits between 2006 and 2010 that total more than $500, you cannot take any additional credits in the 2011 tax year.
  
  Any tax credits that expire in 2016 have no upper limit with regard to the amount of the credit you can claim. If you opt for these whole-home energy upgrades in your existing principal residence or install them in a new abode, you can claim a credit of 30 percent of the cost, including installation. With fuel cell installation, you get the 30 percent credit, up to $500 per 0.5 kW of power capacity.
  
  

Applying for Credits

• Apply for energy-efficiency credits by submitting Form 5695 with your federal income tax Form 1040 or 1040NR. Attach only From 5695 to your income tax return. Keep the manufacturer’s certification of energy credit eligibility for your records. Many states offer energy-efficiency credits as well. Contact your state’s appropriate authority for guidance in obtaining and applying for any possible tax credits or comparable incentives relating to energy efficiency.