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Tax Credits no longer at the $1,500 level (read below)

Federal Tax Credits have been modified and extended through December 31, 2011 on qualifying, high efficiency HVAC equipment, based on the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

How does the current Tax Credit program differ from previous years?

• The maximum amount an eligible homeowner may receive in tax credits for purchasing qualifying products has been reduced from $1,500 to $500

• 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.

•  If you purchased a new qualifying system in 2010, for example, and you took the $1,500 tax credit, you can not qualify for any additional tax credits this year.

• When you purchase and install various HVAC components that qualify for a tax credit amount, the total of all the amounts can not exceed $500

• Most of the HVAC qualifying efficiency levels have remained the same with the only exception being boilers and furnaces (whether gas, propane, or oil). Boilers and furnaces must not have an AFUE of 95 or above instead of 90 or above previously. AFUE  stands for annual fuel utilization efficiency.

• The current credit is no longer 30% of qualified residential energy property costs (including labor), but is based on various HVAC components purchased and installed (see below)

What you can get in Tax Credits for 2011

Product Description	Efficiency Requirements	Maximum Tax Credit
Split System Air Conditioner	16SEER / 13 EER	$300.00
Split System Heat Pump	15 SEER/ 12.5 EER / 8.5 HSPF**	$300.00
Package Air Conditioner	14 SEER / 12 EER	$300.00
Package Heat Pump	14 SEER / 12 EER / 8 HSPF	$300.00
Package Gas / Electric	14 SEER / 12 EER	$300.00
Any advanced Main Circulating Fan	*See Below	$50.00
Furnace or Boiler	95% AFUE	$150.00

*Electricity use of no more than 2% of the total energy use of the furnace

** HSPF stands for Heating Seasonal Performance Factor

►The consumer gets a Manufacturer’s Certification Statementwhich certifies that the product or component qualifies for the tax credit.

►This information is for discussion purposes only and is general in nature. This information is not intended to be or considered as tax advice. Please consult with your tax professional to determine how these credits would apply in your own circumstances.