Federal Energy Tax Credits for Energy-Efficient Systems

Federal Energy Tax Credits | Energy Efficient System Installation

The Federal government has created a number of special Federal Energy Tax Credits that apply to purchases of qualifying energy-efficient systems and ENERGY STAR products and appliances. Each of these energy tax credits has different rules for qualification. Several of these energy-efficient system tax credits last until December 31, 2016, while others are planned to expire sooner, on December 31, 2011. At Holiday Heating and Cooling, we can help individuals understand what purchases qualify for Federal Energy Tax Credits and we can help individuals to buy and install energy-efficient systems that allow them to take advantage of these credits as well as offer significant energy and cost savings for the long term. To learn more about taking advantage of Federal Energy Tax Credits when buying energy-efficient heating and cooling systems, please contact Holiday Heating and Cooling in St. Louis.

2011 Federal Energy Tax Credit for Energy-Efficient Heating & Cooling Systems

Basic Tax Credit Facts:

This Federal Tax Credit program includes a Tax Credit for 10% of the cost of a system or product up to $500 or a credit of a specific amount depending on the type of product
The program currently expires December 31, 2011
This program requires that an energy-efficient system must be installed in an existing home and your principal residence. New construction and rentals do not qualify.

This 2011 Federal Energy Tax Credit applies to a variety of home systems including energy-efficient heating, cooling, and ventilation systems. There are either specific amounts or percentages that an individual can receive as a tax credit when making qualified purchases of energy-efficient systems. The types of qualifying HVAC systems to which this Federal Energy Tax Credit applies includes:

Advanced Main Air Circulating Fans: This is an efficient fan or blower motor, which blows the air that a furnace heats up through the duct system.
Air Source Heat Pumps: These are energy-efficient systems for home heating and cooling, and they are an excellent alternative to furnaces and air conditioners in moderate climates. Heat pumps act like a refrigerator to use electricity to move heat from a cooler space into a warmer space. During the heating season, heat pumps move heat from the cool outdoors into your warm house and during the cooling season, they move heat from a cool house into the warm outdoors.
Central Air Conditioning (CAC): These are the traditional central air conditioning units. A number of central air conditioning units have been established as energy-efficient systems or ENERGY STAR products.
Gas, Propane, or Oil Hot Water Boilers: These heating units use water circulated throughout the home in a system of baseboard heating units, radiators, and in-floor radiant tubing.
Natural Gas, Propane or Oil Furnaces: A furnace uses the combustion of fuel and air to create heat. There are variety of types of furnaces, and many qualify as energy-efficient systems.

To learn more about the specific models and energy-efficient systems that qualify for the Federal Energy Tax Credit program, contact Holiday Heating and Cooling in St. Louis.

Reasons for Federal Energy Tax Credits

The Federal government has established special energy tax credits for individuals buying certain qualifying energy-efficient systems as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This law continued tax credits for energy-efficient systems into 2011, but at lower levels. These Federal Energy Tax Credits encourage the purchase of ENERGY STAR and energy-efficient systems. ENERGY STAR products are recognized because of their ability to use energy resources wisely and reduce carbon emissions. The ENERGY STAR program is a joint program of the DOE and EPA that is designed to help businesses and individuals to protect the environment through superior energy efficiency. This program recognizes energy-efficient systems including heating and cooling systems, appliances, and other products.