2011 Federal and Oregon State Tax Credits Available for Qualifying Residential Systems

 

Federal Tax Credit

 

Jacobs is pleased to report that the federal tax credit on qualifying high-efficiency HVAC equipment was modified and extended through December 31, 2011 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This program differs from the program effective in 2009-2010 in the following ways:

 The maximum amount an eligible homeowner may receive in tax credits for “residential energy property” will be reduced from $1,500 to $500. The cap is on the total amount of credits a homeowner may claim for purchases between 2006 and 2011, not just for 2011. If a homeowner has already claimed credits of $500 or more through this allowance, they will be unable to claim new credits for improvements made during 2011.

All furnaces and boilers, whether natural gas, propane or oil, must have an AFUE of 95 or above to be eligible for the credit.

The credit is no longer 30% of qualified residential energy property costs (including labor), but is now equal to an amount not to exceed:

Maximum Tax Credit Available	Product Type	Efficiency Requirements
$50	Any advanced main air circulating fan	*See below
$150	Natural gas, propane, oil furnace or boiler	95% AFUE
$300	Split system air conditioner	16 SEER / 13 EER
$300	Split system heat pump	15 SEER / 12.5 EER / 8.5 HSPF
$300	Package air conditioner	14 SEER / 12 EER
$300	Package heat pump	14 SEER / 12 EER / 8 HSPF
$300	Package gas / electric	14 SEER / 12 EER

*Electricity use of no more than 2% of the total energy use of the furnace

 

Oregon State Tax Credit

Forced Air Furnaces
Forced air furnaces and boilers installed after January 1, 2011 continue to qualify for an Oregon state tax credit of up to $350 if the furnace meets the following minimum requirements:

• Have an Annual Fuel Utilization Efficiency (AFUE) of 94 percent or higher.
• Has an electrically-efficient fan motor - listed in the Gas Appliance Manufacturers' Directory (GAMA) with the "e" symbol. These are typically marketed as "variable speed" blowers. Multi-speed and single speed motors are not electrically efficient.
• System must be installed with ducted outdoor air for combustion. Models that can be installed using either inside or outside combustion air should indicate on the final invoice that the installation was outside combustion air ("two-pipe"), including furnaces and boilers installed in garages.

Note: in "dual fuel" or "hybrid" systems with a gas furnace installed as a backup to a heat pump, only the primary heating system will be eligible for a tax credit. Installations in rental and commercial property should apply through the Business Energy Tax Credit program.

Boilers
A boiler qualifies for a tax credit of up to a $225 if it meets the following minimum requirements:

• Annual Fuel Utilization Efficiency (AFUE) of 92 percent or higher
• Installed with an outdoor thermostat/reset control, which should be listed on final invoice.  

 

The above is provided as general program information only. Please consult your tax professional for individual application.