Tax Credits
Breaking: Federal Tax Credits For HVAC Extended Through 2011
President Obama has signed into law a tax bill that extends HVAC tax credit for two years. The Middle Class Tax relief Act of 2010 contains a $500 tax credit for qualifying HVAC equipment for 2011. Forty-one of the more than 100 expiring tax credit programs were eliminated from the new package. The bill restores the lifetime cap and the individual equipment limits that were eliminated by the Stimulus Bill in 2009.
These are the new efficiency standards required in order to apply for the tax credits for 2011:
Furnace ($150): must have at least 95% AFUE
Central air conditioner ($300): must have a SEER of at least 16 and EER of at least 13
Electric heat pump ($300): must have at least an HSPF of 9, SEER of 16, and EER of 13
Timeline of Energy Efficiency HVAC Tax Credit Legislation:
- 2005: Energy Policy Act of 2005 created a new tax credit for homeowners who installed higher efficiency HVAC equipment in tax years 2006 and 2007.
- 2008: Emergency Economics Stabilization Act of 2008 extended the tax credit for energy-efficient purchases in 2009, and added energy-efficient biomass fuel stoves- such as wood pellet stoves- as a new class of eligible energy efficient property. Taxpayers who claimed the maximum $500 in tax credit in 2006 and 2007 were not eligible to claim further credits.
- 2009: American Recovery and Reinvestment Act of 2009 (STIMULUS) revised the tax credit for energy-efficient purchases in 2009 and extended it through 2010. Taxpayers could claim up to $1,500 regardless of whether they met the lifetime cap in previous years.
- December 2010: Middle Class Tax Act of 2010 restores tax credit program to Pre-Stimulus levels for 2011.