Arizona and Federal Energy Tax Credits for 2011

You might be aware of the generous tax credits that were being offered for energy efficient window and doors in 2010. However, these credits were only good until December 31, 2010.  In  their place are new incentives good until the end of this year (December 31, 2011).

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Qualifying Products

All Energy Star rated products qualify for federal tax credits. It’s important to note that the Energy Star rating system has become region-specific. Since we are located in Phoenix and Scottsdale, we are in the “Southern Climate Zone”. The following chart applies to our region:

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Credit Amount

The 2010 credits used to cover 30% of material cost, now in 2011 they cover 10%, not including installation.

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Lifetime Cap

The new 2011 cap for windows and skylights is $200 and $500 for doors. The following restrictions apply:

• The total tax credit for all qualifying products (windows, doors, skylights, etc.) cannot exceed $500.
• This cap includes any previous tax credits that may have been used. For example, if you received $200 in tax credits in 2010, you would only be eligible for $300 in 2011. This includes any tax credits for qualifying products purchased since January 1, 2006.

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Duration

The tax credit is in effect for windows and doors installed between January 1, 2011 and December 31, 2011. The credits are only eligible for your primary residence ( the address you use for your federal tax).

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State Energy Tax Credits

Arizona’s tax credits for certain skylights are some of the most generous in the nation. And they make a whole lot of sense in Phoenix and Scottsdale! Skylights that Arizona recognizes as “solar energy devices” offers a tax credit that covers up to 1/4 the cost of material and labor. The lifetime cap for skylight tax credits are $1,000. You can get detailed information at: http://www.azsolarcenter.org/economics/tax-breaks.html