


Tax credits are designed to assist homeowners with improving the energy
efficiency of their homes, and a number of air conditioning and heating
components and water heaters qualify.
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act
of 2010 (2010 Tax Relief Act) includes a provision to restore the federal
tax credit program to pre-Stimulus levels for 2011, including lifetime tax
credit limits. Although the American Recovery and Reinvestment Act of 2009
no longer exists, homeowners can still receive up to $300 in federal tax
credits through December 31, 2011, subject to caps based on the type of
equipment installed.
Under the new law you may qualify for tax credits equal to 10% of the costs
of qualifying equipment as follows:
- Up to $300 (10% of costs)
Gas Tankless Whole Home Water Heater – Energy Factor >= 0.82 and
thermal efficiency of 90% - Up to $150 (10% of costs)
Gas, Propane or Oil Hot Water Boiler AFUE >= 95%
- Up to 30% of Cost
Geothermal and Solar Energy System tax credits are unaffected by the
changes and remain in place as is through 12/31/2016.
Federal tax credits under the 2010 Tax Relief Act are only available for
improvements made in 2011. Not all equipment will qualify for tax credits.
Some products will qualify for federal incentives; some are also eligible
for state rebates. Each state’s energy office offers specific information on
state tax rebates.








