2011 Tax Credit Extension

The Residential Energy Efficiency Tax Credits of 2009-2010 have been extended through 2011, with modifications. The most significant change to this law reduces the cap from $1500 to $500. This cap is the total amount of credits a homeowner may claim between 2006 and 2011, not just in 2011. If a homeowner has already claimed $500 or more in credits through this allowance, they will be unable to claim new credits for improvements made during 2011. Another change involves the amount eligible which now varies by product, see chart below. And lastly, most of the HVAC qualifying efficiency levels have remained the same; however, boilers and oil furnaces have increased from 90 AFUE to 95 AFUE. These changes will take affect on January 1, 2011.

See the chart below for details on the 2011 Tax Credit Extension, differences from the 2009-2010 Tax Credit highlighted in RED, and qualifying products.

Product 2009-2010 Tax Credit 2011 Tax Credit
General Provision 30% of installed cost, up to $1500
 		 10% of installed cost, up to $500
Central A/C

30% installed cost, $1500 max.
Split systems: 16 SEER & 13 EER
Packaged: 14 SEER & 12 EER
 

10% of installed costs, $300 max.
Split systems: 16 SEER & 12 EER
Packaged: 14 SEER & 12 EER
Furnaces

30% installed cost, $1500 max.
Gas furnaces: 95 AFUE
Oil furnaces: 90 AFUE
Boilers: 90 AFUE
 

 10% of installed costs, $150 max.
Gas furnaces: 95 AFUE
Oil furnaces: 95 AFUE
Boilers: 95 AFUE
Efficient Indoor Fan 30% of cost of fan, $1500 max.

 		 $50
Heat Pump 30% of installed cost, $1500 max.
Splits: 15 SEER, 12.5 EER, 8.5 HSPF
Packaged: 14 SEER, 12 EER, 8 HSPF

 		 10% of installed cost, $300 max.
Splits: 15 SEER, 12.5 EER, 8.5 HSPF
Packaged: 14 SEER, 12 EER, 8 HSPF

Gas, Oil, and Propane
and Gas Tankless Water Heaters

 30% of installed cost, $1500 max.
Energy factor .82 or thermal efficiency of 90%

 		 10% of installed cost, $300 max.
Energy factor .82 or thermal efficiency of 90%

Electric Heat Pump Water
Heater

 30% of installed cost, $1500 max.
Energy factor greater than or equal to 2.0
 		 10% of installed cost, $300 max.
Energy factor greater than or equal to 2.0
 

We realize the tax stuff can be a little confusing, so contact Blind and Sons and we can help you not only pick qualifying products, but also verify your savings.


Sources: www.dsireusa.org
               www.gpo.gov
               www.energystar.gov
               www.energytaxincentives.org

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