Those Sizable Tax Credits Will Expire At The End Of The Year — Use Them Or Lose Them

The end of the year is fast approaching, which means time is running out to take advantage of the excellent federal tax credits that are currently available for energy-efficient HVAC upgrades. Anyone planning to purchase a new heating or cooling system — or do an add-on or upgrade — in the near future should act quickly. These credits will no longer be around after Dec. 31, 2011, except for certain geothermal, solar and wind projects. That’s why it’s important to start planning immediately.

Take a look at this outline of qualifying equipment, minimum efficiency ratings and credit amounts:

  • $50, or 30 percent of the price for advanced main air circulating fans that use a maximum of 2 percent of furnace energy
  • $300 for central air conditioners (includes installation expenses) if products carry an efficiency rating (SEER rating) of at least 14. Split systems must be rated 16 or above.
  • $300 for electric heat pumps (including installation) if rated 14 or above. Split systems must be rated 15 or above.
  • $150 for furnaces or boilers (including installation) if equipment carries a rating (AFUE) of at least 90. Gas/propane units must be rated at least 95.
  • 30 percent of the cost — with no upper limit — for geothermal heat pumps and solar energy systems.

Federal tax credits are also available for the most energy-efficient biomass stoves, water heaters, insulation projects and more. Certain federal credits are intended for principal residences only and may have additional efficiency-rating qualifications. has a comprehensive list of the standards, but if it is unclear or you’d like a shortcut to the information you specifically need, contact your local HVAC contractor, who can explain your options.

For details about the federal HVAC tax credits and professional advice tailored to your situation, contact one of our experts at (503) 994-9924. We’re experts in the HVAC field and have been helping local residents enjoy comfortable home environments without breaking the bank for years.