2011 HVAC Tax Credit Extension

As part of the recently passed tax bill, the 25C tax extension for residential high efficiency property has been extended for one year. This legislation included several significant changes in the 2011 tax credits compared to the 2009-2010 tax credits. The maximum tax credit that can be claimed for 2011 has been reduced from $1500.00 to $500.00. In addition, the 2011 tax credits have placed maximum amounts that can be claimed for the various components of the HVAC system, such as a  $150.00 maximum tax credit for a 95% gas furnace and $300.00 for an air conditioner or heat pump. 

These component maximum amounts are additive to a $500.00 maximum lifetime tax credit.

Most of the HVAC qualifying efficiency levels have remained the same. The only exceptions are the boilers and oil furnaces, where the qualifying efficiency has been increased from 90 AFUE to 95 AFUE. 

Homeowners may be eligible for a tax credit of up to $500.00* if they purchase certain types of heating, ventilation and air conditioning (HVAC) systems, or make other energy-related improvements to their homes between January 1, 2011 and December 31, 2011. Note that the tax credit is only valid for taxpayers who own their home and use it as their primary residence. The process to claim these tax credits remains the same, where the consumer will file IRS form F5695 with their 2011 tax return to get their tax credit.

South Shore Heating and Cooling is committed to providing you with product, support and service that is tailored to your specific needs. 

We have included a summary of the extension as it applies to residential HVAC equipment:
General Provision - 10% of installed cost, up to $500.00
 
Split system air conditioning efficiency requirements – 16 SEER/13 EER (both efficiency levels must be met to qualify for the tax credit) - 10% of installed cost, up to $300.00 maximum
Packaged systems: 16 SEER & 13 EER 10% of installed cost up to $300.00

Split system heat pump efficiency requirements – 15 SEER/12.5 EER/8.5 HSPF (all three efficiency levels must be met to qualify for the tax credit) - 10% of installed cost, up to $300.00 maximum
Packaged system: 14 SEER, 12 SEER, 8 HSPF 10% of installed cost, $300.00 maximum 
 
Gas furnace– 95 AFUE - 10% of installed cost, up to $150.00
Oil furnace- 95 AFUE - 10% of installed cost, up to $150.00

Boiler- 95 AFUE 10% of installed cost, up to $150.00


Efficient Indoor Fan - Up to $50.00
 
Please contact us a 508-398-6901 to let us help you find the right solution for your home.
 
* To fully understand how the new tax credit may apply to you and what you can do to obtain one, you should consult with a tax professional for advice on tax preparation, as this tax credit is subject to IRS regulations.