If you missed the deadline for making energy-efficient home improvements in time for the 2010 tax year, don’t fret. The home improvement tax credit has been extended to Dec. 31 of this year. The only downside is that the credit for basic upgrades (such as insulation, heating, ventilating, and air conditioning), is less. For the 2010 tax year, homeowners could receive 30% of the cost of a basic energy-efficient home improvement project up to $1,500. For the 2011 tax year, it’s reduced to 10%, up to $500 for basic improvement projects. However, more costly improvements such as geothermal heat pumps and solar energy systems will still receive a credit of 30% of the cost with no upper limit. Be aware that these energy credits apply only to your principal residence.
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