Tax Credits
Federal Tax Credits for Energy Efficiency
As part of the recently passed tax bill, the 25C tax extension for residential high efficiency property has been extended for one year. The legislation included several significant changes in the 2011 tax credits compared to the 2009-2010 tax credits. The maximum tax credit that can be claimed for 2011 has been reduced from $1,500 to $500. In addition, the 2011 tax credits have placed maximum amounts that can be claimed for the various components of the HVAC system, such as a $150 maximum tax credit for a 95% gas furnace and $300 for an air conditioner or heat pump. These component maximum amounts are additive to a $500 maximum lifetime tax credit.
Most of the HVAC qualifying efficiency levels have remained the same. The only exceptions are boilers and oil furnaces, where the qualifying efficiency has been increased from 90 AFUE to 95 AFUE. The following chart summarizes the differences between the 2009-2010 tax credits and the newly passed 2011 tax credits. Changes in the 2011 tax credits are highlighted in red:
| PRODUCT | 2009-2010 TAX CREDIT Expires 12/31/10 |
2011 TAX CREDIT |
|---|---|---|
| General Provision | 30% of installed cost, up to $1500 | 10% of installed cost, up to $500 |
| Central A/C | Split systems: 16 SEER & 13 EER Packaged: 14 SEER & 12 EER 30% of installed cost, $1500 maximum |
Split systems: 16 SEER & 13 EER Packaged: 14 SEER & 12 EER 10% of installed cost, $300 maximum |
| Furnaces | Gas furnances: 95 AFUE Oil furnances: 90 AFUE Boilers: 90 AFUE 30% of installed cost, $1500 maximum |
Gas furnances: 95 AFUE Oil furnances: 95 AFUE Boilers: 95 AFUE 10% of installed cost, $150 maximum |
| Efficient Indoor Fan | 30% of cost of fan, $1500 maximum | $50 |
| Heat Pump | Splits: 15 SEER, 12.5 EER, 8.5 HSPF Packaged: 14 SEER, 12 EER, 8 HSPF 30% of installed cost, $1500 maximum |
Splits: 15 SEER, 12.5 EER, 8.5 HSPF Packaged: 14 SEER, 12 EER, 8 HSPF 10% of installed cost, $300 maximum |
Always consult a certified tax advisor to ensure you qualify for any tax credits*. The new tax credit extension is in effect for all qualifying systems and products installed in the 2011 calendar year. *Some tax credits may only apply to a customers primary residence.
Click the link below to find SUMMARY OF TAX CREDITS FOR HOMEOWNERS
http://www.energystar.gov/index.cfm?c=products.pr_tax_credits
Additional tax credit information can be found at the following link.
http://www.energystar.gov/index.cfm?c=products.pr_tax_credits