As of January 3, 2012, the Home Energy Efficiency Tax Credit of 2011 has expired. It is unknown whether the credit will be renewed in its historical form or if it will be modified.
The 2011 tax credit applied to windows, insulation, HVAC systems, water heaters, qualifying new homes, and certain household appliances. These incentives were originally enacted in 2005 and have been revised and extended by Congress multiple times, generally for one or two years at a time.
“Discussions have begun in Congress about further revisions and extensions, although we do not expect any action until [late 2011]. So far, discussions have focused on simple extensions of the new home and appliance credits, and some modifications to the residential credit, updating qualification levels and modifying incentive amounts. There has also been some discussion about reinstating the commercial vehicle tax incentive that expired at the end of 2009. In addition, there is discussion of incentives for comprehensive energy-efficiency retrofits to homes and commercial buildings. Under these proposals, incentives would be paid for homes or buildings that reduce energy use at least 20%, with incentives increasing as higher levels of savings are achieved. Any changes to the incentives or new incentives would likely not begin until January 1, 2012.” – The Tax Incentives Assistance Project at www.energytaxincentives.org