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2011 Changes to Federal Tax Credits Available for Qualifying Residential Systems

Federal tax credits on qualifying, high-efficiency HVAC equipment have been modified and extended through December 31, 2011 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This program differs from the program effective in 2009-2010 in the following ways:

  • The maximum amount an eligible homeowner may receive in tax credits for purchasing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, will be reduced from $1,500 to $500.

  • The $500 cap is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2010. If you have already claimed credits of $500 or more from improvements made prior to 2011, you will be unable to claim new credits for improvements made during 2011.

  • All furnaces and boilers, whether natural gas, propane or oil, must have an AFUE of 95 or above to be eligible for the credit.

A complete list of qualifying improvements can be found at www.energystar.gov


Qualifying Units

tax credit Furnaces Furnaces 95% AFUE or Higher
10% of cost up to $200
tax credit Tankless Water Heaters Tankless Hot Water Heaters / Energy Factor 0.82
10% of cost up to $150
tax credit Air Conditioners Air Conditioners with EER 13, SEER 16
10% of cost up to $150
tax credit PG&E In addition, some furnaces qualify to receive additional rebates from the manufacturer and PG&E. Our average furnace tax credit and rebate is $1800-$2100 with some as high as $3500. Tankless Hot Water Heaters average tax credit is $1100-$1500.




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