Tax credits for heating and cooling equipment were generous last year. While these rates have expired at the end of 2010, tax credits at lower rates have, fortunately, been extended. This is great news, as it means 2011 is still a good year to purchase new high efficiency HVAC equipment.
Most of the new tax credits are 10 percent, and extend through December 31, 2011. Your home must be a pre-existing, primary residence to qualify. Newly constructed and rented homes do not qualify.
What units qualify for credits?
Air Source Heat Pumps
Air source heat pumps that qualify are eligible for credits up to $300.
Split system and ductless heat pumps must meet the following qualifications:
- HSPF (Heating Seasonal Performance Factor) of at least 8.5
- EER (Energy Efficiency Ratio) of at least 12.5
- SEER (Seasonal Energy Efficiency Ratio) of at least 15.
Package system heat pumps must have:
- HSPF of at least 8
- EER of at least 12
- SEER of at least 14
Central Air Conditioners
CAC systems that qualify may be eligible for credits up to $300.
Split system CACs must meet SEER ratings of at least 16, and EER ratings of at least 13.
Package system CACs must meet SEER ratings of at least 14, and EER ratings of at least 12.
Natural Gas, Oil or Propane Furnaces
If the system’s AFUE (Annual Fuel Utilization Efficiency) is 95 percent or higher, it may be eligible for credits up to $150.
Gas, Oil or Propane Powered Hot Water Boilers
To be eligible for credits up to $150, the hot water boiler’s AFUE must be 95 percent or higher.
Advanced Main Air Circulating Fans
To qualify for a credit of $50, an advanced main circulating fan must use 2 percent of the furnace’s energy during operation (no more).
These extended federal tax credits mean that 2011 is a good year to purchase new HVAC equipment. Be sure to check around for other possible rebates from different sources, too, such as from the utility company. Call Roth Heating & Cooling, Plumbing, Electrical, Drain Services at (503) 266-1249 for more information on high efficiency heating and cooling equipment that may qualify for tax credits!