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Extension of Energy Efficiency Tax Credits

Congress Extends Federal Tax Credit for Energy Efficient Homes and Other Residential Energy Efficiency Tax Credits

On December 16, 2010, Congress extended the $2,000 federal tax credit for builders who build energy efficient homes. The extension is from January 1, 2010 to December 31, 2011. The extension was part of a sweeping tax package negotiated by the White House and Republican Congressional leaders.

The legislation also includes a provision that extends the tax credit for consumers who purchase qualified energy saving products, such as spray foam insulation, but lowers the credit to its pre-economic recovery act levels. The new bill extends the credit to the end of 2011, but reduces the incentive to the original 10% up to $500.

President Obama is expected to sign the legislation into law this week.

Filed Under: Blog

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