Hightower Service, Inc. - Federal Tax Credits for Consumer Energy Efficiency

Federal Tax Credits for Consumer Energy Efficiency

If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit. Below you will find an overview of the federal tax credits for energy efficiency.

Please note, not all ENERGY STAR qualified products qualify for a tax credit. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.

What's Included in the Credit

Tax Credit: 10% of cost, with a cap of $500
Expires: December 31, 2011
Details: Must be an existing home & your principal residence. New construction and rentals do not qualify. The cap is on the total amount of credits a homeowner may claim for purchases between 2006 and 2011, not just for 2011.
* Tax Credit includes installation costs on all of the below.

Heating, Ventilating, Air Conditioning (HVAC)

Advanced Main Air Circulating Fan

An Advanced Main Air Circulating Fan is an efficient fan, or blower motor which blows the air that your furnace heats up through the duct system.
Requirements
- Must use no more than 2% of the furnace's total energy. Note: If the fan is qualified, but the furnace is not, you will not be able to take 30% off the cost of the entire furnace. Ask your HVAC contractor to break out the cost of the fan in your bill. You can get a 30% tax credit on the cost of the fan alone.

Air Source Heat Pumps

Air Source Heat PumpsHeat pumps offer an energy-efficient alternative to furnaces and air conditioners in moderate climates. Like your refrigerator, heat pumps use electricity to move heat from a cool space into a warm, making the cool space cooler and the warm space warmer. During the heating season, heat pumps move heat from the cool outdoors into your warm house; during the cooling season, heat pumps move heat from your cool house into the warm outdoors. Because they move heat rather than generate heat, heat pumps can provide up to 4 times the amount of energy they consume.
Requirements
- Split Systems:
  - HSPF ≥ 8.5
  - EER ≥ 12.5
  - SEER ≥ 15
- Package Systems:
  - HSPF ≥ 8
  - EER ≥ 12
  - SEER ≥ 14

Central Air Conditioning (CAC)

Central Air Conditioning (CAC)The best way to find tax credit eligible CACs is to ask your HVAC Contractor (Heating Ventilation and Air Conditioning). To verify tax credit eligibility, ask your HVAC contractor to provide the Manufacturer Certification Statement for the equipment you plan to purchase. Or, search the Manufacturer's website.
Requirements
- Split Systems:
  - SEER ≥ 16
  - EER ≥ 13
- Package Systems:
  - SEER ≥ 14
  - EER ≥ 12

Gas, Propane, or Oil Hot Water Boiler

Gas, Propane, or Oil Hot Water BoilerThese are heating units that use water circulated throughout the home in a system of baseboard heating units, radiators, and/or in-floor radiant tubing.
Requirements
- AFUE ≥ 95

Natural Gas or Propane Furnace

Natural Gas or Propane FurnaceA furnace uses the combustion of fuel and air to create heat.
Requirements
- AFUE ≥ 95