Nonbusiness Energy Property Credit

This credit has been extended for 1 year with a reduced rate of 10%. Amounts provided by subsidized federal, state, or local energy financing do not qualify for the credit. The energy-efficiency standards for qualified natural gas, propane, or oil furnaces, or hot water boilers have been increased.

For 2011, the credit is limited as follows:

• A total combined credit limit of $500 for all tax years after 2005 (Form 5695, Part I)
• A combined credit limit of $200 for windows for all the amount of your tax years after 2005
• A maximum credit for residential energy property costs of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace, or hot water boiler; and $300 for any item of energy-efficient building property