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2011 A/C & Furnace Tax Credit Information
When you are ready to make the leap and purchase new HVAC equipment, trust Mr. Duct!
Not only can we help you increase your comfort, lower you energy costs, add value to your home, and do something good for the environment, we can guide you through the 2011/2012 HVAC Tax Credit Process!
Updated Tax Incentives for Homeowners
Part of the tax extender bill passed by Congress in December 2010 made significant changes to tax incentives for federal taxpayers who install qualified energy efficient retrofits in their home, including higher efficiency heating, ventilation, and air conditioning (HVAC) equipment in their primary residences. An eligible taxpayer may claim up to $500 in tax credits, subject to caps based on the type of equipment installed.
You may now qualify for tax credits equal to 10% of the costs (up to a $300 limit) for installing a high efficiency central air conditioner or heat pump. You may also qualify for tax credits equal to 10% of the costs (up to $150 limit) for installing a qualified furnace. A smaller tax credit of 10% of the installed costs (up to $50 limit) is available for installing a system with an advanced main air circulating fan.
The current tax credit offers reflect the 2011 requirements and are available until December 31st, 2011.
What Is Considered a High Efficiency Furnace?
Natural gas furnaces, propane furnaces, and oil furnaces - must meet or exceed 95% AFUE. AFUE, or annual fuel utilization efficiency, is a marker of efficient fuel use. The higher the AFUE rating is on a furnace model, the more energy efficient the equipment is. It also results in lower energy costs. The Gas Appliance Manufacturers Association, www.gamanet.org, publishes a directory of certified AFUE ratings.
Advanced main air circulating fan credit - the fan must use no more than 2% of the furnace's total energy. If the fan is qualified, but the furnace is not, you will not be able to take 10% off the cost of the entire furnace.
What Is Considered a High Efficiency Air Conditioner?
A split system central air conditioner - must meet or exceed 16 SEER and 13 EER; package system central air conditioners must meet or exceed 14 SEER and 12 EER.
An air source heat pump - must meet or exceed 15 SEER and 12.5 EER and 8.5 HSPF, in order to qualify for the tax credit. Package heat pump systems must meet or exceed 14 SEER and 12 SEER and 8 HSPF.
If I Claimed More Than $500 in Tax Credits Under the Previous Tax Credit Programs, am I Still Eligible?
No. The new law reinstates the lifetime tax credit limits, which disqualify any homeowner who has claimed more than $500 in 25c tax credits since January 1, 2005, from any further credits.
Why You Should Consider an Upgrade
Advances in technology over the last ten years mean that today's higher efficiency HVAC equipment uses less energy, runs more quietly, and provides improved indoor air quality and comfort. Moreover, by using less energy and improved refrigerants, your new HVAC equipment is better for the environment.
Most homeowners would like to reduce their energy bills with higher efficiency HVAC equipment and these tax credits help make the initial investment more affordable.
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