Residential Energy Efficiency Tax Credit Expires - Others Given New Life

December 31, 2011 marks the expiration of the Federal Energy Efficiency Tax Credit Program. The technologies that are now ineligible for the maximum $500 personal tax credit are:

Water Heaters, Furnaces , Boilers, Heat pumps, Central Air conditioners, Building Insulation, Windows, Doors, Roofs, Circulating fans used in a qualifying furnace, and stove that use biomass fuel such as wood pellets, wood, and corn.

But the good news is the 30% tax credit for renewable energy products has been extended through 2016. Here is how the extended credits work for the 3 following systems:

Geothermal Heat Pumps - Wind Energy Systems - Solar Energy Systems 

Credit: 30% of cost, with no upper limit

Must be "placed in service" by Dec. 31, 2016
Available on principal home or second home.
New and existing homes

Fuel Cells 

Credit: 30% of cost, up to $500 per .5 kW of power capacity

Must be "placed in service" by Dec. 31, 2016
Available on principal home or second home.
New and existing homes

You may also be eligible for state, local, and utility incentives.