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 $1,500 to $500. 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 maximum tax credit for a 95% gas furnace and $300 for an air conditioner or heat pump. These component maximum amounts are additive to a $500 maximum lifetime tax credit.
Most of the HVAC qualifying efficiency levels have remained the same. The only exceptions are boilers and oil furnaces, where the qualifying efficiency has been increased from 90 AFUE to 95 AFUE. The following chart summarizes the differences between the 2009-2010 tax credits and the newly passed 2011 tax credits. Changes in the 2011 tax credits are highlighted in red:
| Product | 2009-2010 Tax Credit | 2011 Tax Credit |
| Qualifying Geothermal Systems | 30% of installed cost, no limit, expires 2016 | No change |
| General Provision | 30% of installed cost, up to $1,500 | 10% of installed cost, up to $500 |
| Central A/C | Split systems: 16 SEER & 13 EER Packaged: 14 SEER & 12 EER 30% of installed cost, $1,500 max |
Split systems: 16 SEER & 13 EER Package systems: 14 SEER & 12 EER 10% of installed cost, $300 max |
| Furnaces | Gas furnaces: 95 AFUE Oil furnaces: 90 AFUE Boilers: 90 AFUE 30% of installed cost, $1,500 max |
Gas furnaces: 95 AFUE Oil furnaces: 95 AFUE Boilers: 95 AFUE 10% of installed cost, $150 max |
| Efficient Indoor Fan | 30% of cost of fan, $1,500 max | $50 |
| Heat pump | Splits: 15 SEER, 12.5 EER, 8.5 HSPF Packaged: 14 SEER, 12 EER, 8 HSPF 30% of installed cost, $1,500 max |
Splits: 15 SEER, 12.5 EER, 8.5 HSPF Packaged: 14 SEER, 12 EER, 8 HSPF 10% of installed cost, $300 max |
| 3rd Party Incentives | Missouri | Illinois |
| AmerenUE/Illinois |
$650(14-16 SEER)- $850( 16 SEER+ ) * *existing unit must be 8 EER or lower to qualify $200 Duct Sealing (reduction of 14% of airflow) |
$125 (92%+) $200 (95%+) $600 (purchase of 14 SEER higher AC while replacing 10 SEER or lower) $110 (purchase of a 14 SEER higher AC while replacing 10 SEER or higher AC) $600 (Installation of Geothermal) $120 (purchase of system based off of Manual J) |
| Laclede Gas | $150(95%) $175(96%+) $25(Energy Star Rated Thermostat) | |
| Federal Tax Credit |
95% Furnace – $150 Variable Speed – $50 16.0 SEER/13.0 EER AC – $300 15.0 SEER/12.5 EER HP – $300 30% of the cost of the Geothermal System (no limit) |
95% Furnace – $150 Variable Speed – $50 16.0 SEER/13.0 EER AC – $300 15.0 SEER/12.5 EER HP – $300 30% of the cost of the Geothermal System (no limit) |
| Cuivre River Electric |
Dual-Fuel, $150/Ton Install a 15.5 SEER heat pump with gas backup heat Ground Source, $750/Ton Install a 17.1 EER ground source heat pump |
Please consult with a certified tax adviser to ensure you qualify for the tax credit. The new tax credit extension is in effect for all qualifying systems and products installed in the 2011 calendar year.
Information provided on this page is not offered by Indoor Comfort Team, LLC and is subject to third party terms and conditions which means it can be disqualified at any time without out any notice. Please check with your utility company for current offers.