Tax Incentives & Rebates

2011 Tax Credit Extension

As part of the recently passed tax bill, the 25C tax extension for residential high efficiency property has been extended for one year.   This 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 $1500 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:

General Provision
2009-2010
30% of installed cost, up to $1500 maximum
2011
10% of installed cost, up to $500

Central Air Conditioning Systems
Split Systems:  16 SEER and 13 EER
Package Units: 14 SEER and 12 EER
2009-2010
30% of installed cost, up to $1500 maximum
2011
10% of installed cost, up to $300 maximum

Heat Pump Systems
Split Systems: 15 SEER and 8.5 HSPF
Package Units: 14 SEER and 8 HSPF
2009-2010
30% of installed cost, up to $1500 maximum
2011
10% of installed cost, up to $300 maximum

Furnaces
Gas Furnaces: 95 AFUE
2009-2010
30% of installed cost, up to $1500 maximum
2011
10% of installed cost, up to $150 maximum

Efficient Indoor Fan
2009-2010
30% of installed cost, up to $1500 maximum
2011
$50

As with the previous tax credits, we encourage homeowners to consult with a certified tax advisor to ensure they qualify for the tax credit.   The new tax credit extension is in effect for all qualifying systems and products installed in the 2011 calendar year.