2011 Federal Tax Credits for qualifying residential systems

Qualifying, high efficiency HVAC equipment may still be eligible for federal tax credits. These tax credits have been modified and extended through December 31, 2011 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

This program is different from the previous program (effective in 2009-2010) in the following ways:

The maximum amount an eligible homeowner may receive in tax credits for purchasing qualifying products (upgraded insulation, windows, HVAC equipment or other eligible improvements) has been reduced from $1,500 to $500.

There is a $500 cap on these credits, but that cap is reduced by the total amount of residential energy property credits a homeowner has already 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:

Any advanced main air circulating fan: Max Credit $50.00
Natural gas, propane, oil furnace or boiler: Max Credit $150.00
Split system air conditioner : Max Credit $300.00
Split system heat pump: Max Credit $300.00
Package air conditioner: Max Credit $300.00
Package heat pump: Max Credit $300.00
Package gas / electric: Max Credit $300.00

In addition, these systems need to meet certain energy requirements.
Geothermal system tax credits are unaffected by these changes and remain in place as is through 12/31/2016.

If you have any questions, or you are thinking about upgrading or replacing your AC System, please call us – Sean McCutcheon’s Air Conditioning and Heating – at 941-921-7208. Learn how Sean McCutcheon’s can keep you cool!

If you are interested in seeing if you qualify for any of the tax credits, please see your tax advisor to determine how these credits would apply in your circumstance.