We are pleased to announce that the federal tax credits for Luxaire residential HVAC Equipment have been extended for 2011 and remain in place for equipment purchased and installed from January 1, 2011 until December 31, 2011. This extension was part of the Federal Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which was signed into law by President Obama on December 17, 2010.
This program extension does include several major changes form the tax credit program that was in effect for 2009 and 2010.
Changes for the 2011 federal tax credit program
include the following:
- Eligible taxpayers
can claim 10% of equipment costs excluding labor, up
to a maximum total of $500 in the calendar year 2011
for high efficiency residential equipment.
- An individual or household lifetime cap of $500,
which dates back to January, 2006 has been added
under this 2011 program. For example, if an
individual has claimed the federal section 25C tax
credit at any time since 2006, for any qualifying
energy efficiency upgrade up to or over $500, they
would be ineligible to claim the credit in 2011.
- As of January 1, 2011, the new tax credit
levels will be at pre-ARRA or stimulus levels:
- Maximum of $50 for any furnace advanced main air
circulating fan (where the total electricity use is
equal to or less than 2% of the total energy used by
the furnace). These furnaces are identified in the
AHRI directory as electrically energy efficient.
- Maximum of
$150 for any qualified natural gas, propane or oil
furnace or hot water boiler with an AFUE of 95% or
- Maximum of $300 for any
energy-efficient building property equipment (i.e.
Central Air Conditioners or Heat Pumps)
system Air Conditioners must be rated at 16 SEER/13
EER or above.
- Split system Heat Pumps must be
rated at 15 SEER/12.5 EER/8.5 HSPF or above.
- Package air conditioner must be rated at 14 SEER/12
EER or above.
- Package heat pump must be rated
at 14 SEER/12 EER/8 HSPF or above.
- Package gas
/electric outdoor unit must be rated at 14 SEER/12
EER or above.
- Equipment must be
placed in service after 12/31/2010 and before
- The process to claim these tax
credits remains the same, where the consumer will
file IRS form F5695 with their 2011 tax return to
get their tax credit. As always when dealing with
federal tax credits, the consumer/customer is
encouraged to contact a tax professional to
determine their eligibility for these credits.
With these changes, the 2011 Federal tax credit
program does provide benefits to consumers to
purchase high efficiency residential HVAC equipment.
The published Luxaire Tax Credit Certificates are being
updated at this time to reflect these changes for
2011. Please note that since the efficiency levels
did not change, all systems and units that met the
criteria for the federal tax credits in 2010 are
still eligible to receive these tax credits in 2011,
just at these lower dollar amounts.
the best method to check for new system matches is
to go the AHRI website at
search the applicable Product Directory (AC, Heat
Pumps, or Furnaces) and conduct a search for any
unit or system matches for ratings that are in the
database. Any distributor, contractor, or consumer
may search for the system information and download a
certificate showing the efficiency levels for that
equipment as validated through the AHRI voluntary
certification program. The certificates available
from the AHRI website meet all requirements for
documentation of system ratings needed by the IRS,
and may be used in place of the certificates
provided by the equipment manufacturer.
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