Understanding 2011 Energy-Efficient Home Improvement Tax Credits
Posted by Raymond Plumbing Heating and Air Conditioning on Thu, Jan 20, 2011
Tax Credit Extended in 2011 for Energy-Efficient Home Improvements
The good news is that Congress did extend last year’s popular energy-efficient home improvement tax credits. The bad news is that the 2011 tax credits are not as generous this year as they were in 2010. Even so, a little help is better than nothing; and Lorain County homeowners can still save money on their 2011 taxes by installing energy-efficient furnaces, air conditioners and water heaters. Geothermal system tax credits which originated in the American Recovery & Reinvestment Act of 2009 continue unchanged at 30% credit with no maximum through December 31, 2016.
The biggest changes in the 2011 tax credit program are:
- Reduction of the tax credit amount from 30% to 10% of the cost of a qualified energy-efficient home improvement.
- Reduction of the maximum tax credit from $1,500 to $500.
- Imposition of dollar limits on certain home improvements that were previously eligible for the 30% credit. (see below)
- Exclusion from the 2011 program of any homeowners who have received more than $500 in tax credits in previous years.
- The required AFUE for all gas, propane and oil furnaces and boilers has been raised to 95 across the board for 2011. The 2010 tax credit allowed credit for oil furnaces and all boilers with a 90 AFUE rating, although gas and propane furnaces were required to meet the 95 AFUE rating last year.
Maximum tax credit dollar limits have been set for certain energy-efficient products, as follows:
- $150 – Natural gas, propane, oil, furnace or hot water boiler (95% AFUE)
- $300 – Split-system air conditioner (16 SEER/13 EER)
- $300 – Split-system heat pump (15 SEER/12.5 EER/8.5 HSPF)
- $300 -- Package air conditioner (14 SEER/12 EER)
- $300 -- Package heat pump (14 SEER/12 EER/8 HSPF
- $300 -- Package gas/electric (14 SEER/12 EER)
- $50 – Advanced main air circulating fan (not more than 2% of furnace total energy use)
Get the facts on the 2011 tax credit changes by downloading our free report. Download now!
