$500 Stimulus Information

Energy Efficiency Tax Credit Information

Starting on January 1, 2011 and through December 31, 2011, an eligible homeowner can claim 10% of the costs, capped at $500, for the installation of qualified energy efficient improvements, subject to certain limits.

 

Under the new law, for HVAC, the maximum a homeowner could claim is $300 for a qualified central air conditioner and heat pump, and $150 for a qualified furnace or hot water boiler, and $50 for any advanced main air circulating fan.

 

Beyond the change to the tax credit values, the new law will increase the qualifying standards for natural gas hot water boilers, propane hot water boilers, oil furnaces, and oil hot water boilers to 95% AFUE. The qualifying standards for natural gas furnaces and propane furnace remain at 95% AFUE.

 

The qualifying standard for central air conditioners and heat pumps, which were modified by the Stimulus bill in 2009, are not changed. Therefore, a central air conditioner must meet or exceed 16 SEER and 13 EER; and an air source heat pump must meet or exceed 15 SEER and 12.5 EER and 8.5 HSPF, in order to qualify for the tax credit.

 

Finally, the new law reinstates the lifetime credit caps, which disqualify any homeowner who has claimed more than $500 in 25c tax credits since January 1, 2005, from any further credits.

 

Qualifying HVAC Equipment Tax Break Down:

  • Central Air Conditioners: 16 SEER and 13 EER = $300 credit
  • Heat Pumps: 15 SEER and 12.5 EER = $300 credit
  • Natural Gas Furnaces: 95% AFUE = $150 credit
  • Advanced Main Air Circulating Fan: ECM Blower = $50 credit

 

Use IRS form 5695 (Residential Energy Efficient Tax Credit) http://www.irs.gov/pub/irs-pdf/f5695.pdf to file your claim. Taxpayers are not required to file anything more than the form, however you should keep a record of your installation on hand.

 

The Federal Tax credit can be used in conjunction with Trane rebates and Metro Environmental Services in house “Instant Rebates” and other discounts and specials. When added together this represents a once in a lifetime value and savings opportunity to purchase a world class home Trane HVAC system! Also, your new Trane system may qualify for other local credits and rebates from utility companies that will pay in addition to the Federal Tax Credit.

 

For more detailed information on the entire Federal Tax Credit plan: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

 

 


 
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