HVAC Tax Credits Scaled Back, But Very Important for 2011!

The extension of the Section 25C Tax Credits are a done deal, and while much smaller for 2011, when combined with utility rebates, they remain a viable force to keep the consumer focused on upgrading to 95% AFUE furnaces and 16/15 SEER (AC/HP) outdoor units for the next calendar year.

Thanks to HARDI for the following summary of the changes;

President Obama signed into law an $858 billion dollar tax relief and benefits package on Friday which includes.

A two year extension of the current tax rates.

An extension of federal unemployment benefits for 13 months.

Setting a two-year Estate Tax at 35% for individual inheritances over $5 million.

A 2% reduction in an employee’s contribution to Social Security. Employer’s contributions to Social Security will remain at current levels.

Also included in the tax bill is a one-year extension of the 25c tax credit, which is returned to pre-stimulus levels. Some specifics of the bill as they relate to 25c.

Eligible taxpayers can claim up to $500 in 2011.

All efficiency levels stay at the current levels, except for natural gas and propane hot water boilers, and oil hot water boilers oil furnaces, which will move to 95% AFUE.

An individual or household lifetime cap of $500, which dates back to January 2006. For example, if an individual has claimed the 25c tax credit since 2006, for any qualifying upgrade up to or over $500, they would be ineligible to claim the credit in 2011.

As of January 1, 2011, the new credit levels will be:

$50 for any advanced main air circulating fano $150 for any qualified natural gas, propane or oil furnace or hot water boiler.o $300 for any item of energy-efficient building property (i.e. Central Air/ Heat Pumps)

$150 for any qualified natural gas, propane or oil furnace or hot water boiler.o $300 for any item of energy-efficient building property (i.e. Central Air/ Heat Pumps)

$300 for any item of energy-efficient building property (i.e. Central Air/ Heat Pumps)

Taxpayers should always consult with their tax professional to determine the applicability of any tax credit to their particular situation. More information is available at both the IRS and DOE websites.

Federal Tax Credits End - The Scramble Is On!

With the scheduled end of the Federal 25C Tax Credits for replacement of residential heating and cooling systems with specified high efficiency models, homeowners and contractors alike are scrambling to get schedules coordinated with demand in order to meet the Dec 31, 2010 deadline. I have advised all of my friends and family to call quickly as available days in November and December are limited by holidays and weather, and contractor installation slots are filling up quickly. If your system is older and you'd like to enjoy the higher efficiencies available today with assistance from a federal tax credit, call your heating and cooling professional asap so you don't miss this incredible savings opportunity.

THE END IS NEAR! - Federal Tax Credits Coming to an End!

The Section 25C Federal Tax Credits for energy efficiency upgrades that provide up to a $1500 incentive for you to replace your home's old heating and cooling system with a new high efficiency system are scheduled to expire December 31, 2010. That means just 123 days left to increase the comfort and reduce the operating costs of your home. Combined with manufacturers' incentives, the savings can be HUGE! This year has seen the lowest net (out-of-pocket) prices for installed HVAC systems in years. Many homeowners are combining utility rebate programs, manufacturer incentives, and the soon-to-be-gone federal tax credits for truly ONCE in a lifetime savings. Your neighborhood York Dealer can tell you everything you need to know about the new systems, starting with the exciting York Hybrid Comfort System that works with both gas and electric energy sources to provide hyrbrid energy savings during the heating season and high efficiency cooling in the hot summer months. You can find out more at http://www.yorkupg.com/comfort/