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Check Out These HVAC Tax Credits Before You Buy

Homeowners can still claim tax credits on some energy-efficient HVAC equipment or renewable energy systems for their homes. While previously available tax credits expired on Dec. 31, 2010, the Middle-Class Tax Relief Act of 2011 offers new, lower credits for some items.

These products are eligible for tax credits through 2011. In most cases, installation costs are included.

  • Gas, oil or propane water heaters in a primary residence — $300 tax credit. The majority of electric tankless and storage tank water heaters do not qualify.
  • Air source heat pumps (split or packaged system) — $300 tax credit
  • Electric heat pump water heater in a primary residence — $300 tax credit
  • Central air conditioning units — $300 tax credit. You may have to replace your heating and cooling systems to qualify.
  • Insulation material or system to reduce your home’s heat gain or loss — tax credit equivalent to 10 percent of the cost up to $500. Its principal purpose must be for insulation and it must meet the 2009 International Energy Conservation Code and Amendments. Installation and labor costs are not included.
  • Natural gas or propane furnaces and gas, propane or oil hot water boilers — $150 tax credit.
  • Advanced main air circulating fans — $50 tax credit. Even if your furnace does not qualify, you are eligible for a 30 percent tax credit on the price of the fan.

These products are eligible for tax credits through 2016.

  • Geothermal heat pumps or solar water heaters in principal, second, new and existing homes. The tax credit is equivalent to 30 percent of the cost with no upper limit. Pumps must be operational by Dec. 31, 2016. Water heaters must be certified by the Solar Rating and Certification Corporation (SRCC.).

For information on claiming your tax credits and links to the required forms, visit the U.S. Department of Energy’s website. For help with all of your heating and cooling needs, visit us at the Blanton’s Heating & A/C website.