Federal Tax Credit
2011 Federal Tax Credits for Qualifying Residential Systems
Federal tax credits on qualifying, high-efficiency HVAC & Water Heating equipment have been modified and extended through December 31, 2011 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This program differs from the program effective in 2009-2010 in the following ways:
- The maximum amount an eligible homeowner may receive in tax credits for purchasing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, will be reduced from $1,500 to $500 (with a maximum per-category amount as listed in the table below).
- The $500 cap is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2010. If you have already claimed credits of $500 or more from improvements made prior to 2011, you will be unable to claim new credits for improvements made during 2011.
- All furnaces and boilers, whether natural gas, propane or oil, must have an AFUE of 95 or above to be eligible for the credit.
- The credit is no longer 30% of qualified residential energy property costs (including labor), but is now equal to an amount not to exceed:
MAX AVAILABLE TAX CREDIT
PRODUCT TYPE
EFFICIENCY REQUIREMENTS
$50
Any advanced main air circulating fan
Electricity use of no more than 2% of the total energy use of the furnace
$150
Natural Gas, Propane, Oil Furnace or Boiler
95% AFUE
$300
Split System Air Conditioners
16 SEER / 13 EER
$300
Split-System Heat Pumps
15 SEER / 12.5 EER / 8.5 HSPF
$300
Package Air Conditioners
14 SEER / 12 EER
$300
Package Heat Pump
14 SEER / 12 EER / 8 HSPF
$300
Package Gas / Electric
14 SEER / 12 EER
$300
Gas Water Heater
EF >= 0.82 or TE >= 0.90
$300
Heat Pump Water Heater
EF >= 2.0
NOTE: Geothermal system tax credits and solar water heaters are unaffected by these changes and remain in place through 12/31/2016.
IMPORTANT: This information is provided to assist in identifiying applicable tax credits on HVAC products, but in no way it should be considered tax advice. Consult your tax professional to review your particular circumstances.
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