2011 Tax Credits
In December of 2010, Congress voted to extend tax credits in 2011 for the purchase of energy efficient air conditioning although at a reduced level. They are as follows:
• Eligible taxpayers can claim up to $500 in 2011.
• All efficiency levels stay at the current levels — except for natural gas, propane, and oil furnaces and hot water boilers, which will move to 95 percent AFUE.
• A lifetime cap of $500, dating back to January 2006, is reinstated for individuals and households. For example, if an individual has claimed the 25c tax credit since 2006, he would be ineligible to claim the credit in 2011 for any qualifying upgrade up to or over $500.
As of Jan. 1, 2011, the new credit levels are:
• $50 for any advanced main air circulating fan.
• $150 for any qualified natural gas, propane, or oil furnace or hot water boiler.
• $300 for any item of energy-efficient building property (e.g., central air/heat pump).
Source: Heating, Airconditioning & Refrigeration Distributors International
