Energy Tax Credit Colorado Springs
Tax Credits Extended for 2011
The Tax Relief Act provides homeowners federal tax credits on qualifying, high-efficiency residential heating and cooling, water heater products and systems (HVAC) through December 31, 2011.
Call Absolute Comfort at 719-471-2347 to speak with a Indoor Comfort Systems professional about heating, furnace, air conditioning, water heater, tankless water heater, and boiler products and equipment that qualify for the Tax Credit in Colorado Springs.
As a leader in providing energy-efficient home comfort solutions, Absolute Comfort offers many products and leading brands that are eligible under this new law. Depending on the type of system or product purchased, it is possible to qualify for a tax credit of up to $1,500 on your 2009 or 2010 income tax return or up to $500 on your 2011 income tax return.
Some of the top brands we install include Amana, Carrier, Rheem, Rinnai, Trane.
The maximum amount an eligible homeowner may receive in federal tax credits for purchasing and installing qualifying products,whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, is now 10% of the cost of the improvement, including installation costs, up to $500 (with maximum per-category amounts listed below).
The $500 tax credit amount is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2010. If a residential homeowner has already claimed single-family home tax credits of $500 or more from improvements made prior to 2011, he or she cannot claim any new tax credits during 2011.
WHICH PRODUCTS ARE ELIGIBLE?
All furnaces and boilers, whether fueled by natural gas, propane or fuel oil, must have an AFUE rating of 95% or higher to be eligible for the 2011 federal tax credit program. Products or units must be installed between January 1, 2011, and December 31, 2011, to be eligible for tax credits.
Maximum Available Tax Credit: $50
Product Type: Any advanced main air circulating fan.
Efficiency Requirements: Electricity consumption of no more than 2% of the total energy use of the furnace.
Maximum Available Tax Credit: $150
Product Type: Natural Gas, Propane, Oil Furnaces or Boilers.
Efficiency Requirements: 95% AFUE rating.
Maximum Available Tax Credit: $300
Product Type: Split-System Air Conditioners.
Efficiency Requirements: 16 SEER / 13 EER.
Maximum Available Tax Credit: $300
Product Type: Split-System Heat Pumps.
Efficiency Requirements: 15 SEER / 12.5 EER / 8.5 HSPF.
Maximum Available Tax Credit: $300
Product Type: Packaged Air Conditioners.
Efficiency Requirements: 14 SEER / 12 EER.
Maximum Available Tax Credit: $300
Product Type: Packaged Heat Pumps.
Efficiency Requirements: 14 SEER / 12 EER / 8 HSPF.
Maximum Available Tax Credit: $300
Product Type: Packaged Gas/Electric Units.
Efficiency Requirements: 14 SEER / 12 EER.
Maximum Available Tax Credit: $300
Product Type: Tankless Water Heaters.
Efficiency Requirements: Energy factor (EF) >= 0.82.
Maximum Available Tax Credit: $150
Product Type: Boilers.
Efficiency Requirements: AFUE >= 95.
HOW DO I APPLY FOR A 2011 TAX CREDIT?
For qualified improvements, homeowners may be able to claim tax credits equal to 10 percent of the installed costs (up to $500 maximum). The extended tax credit is in effect for all qualifying systems and products installed during the 2011 calendar year and expires on December 31, 2011.
The tax credit applies as a direct reduction of taxes owed. In the past, IRS has directed taxpayers to use Form 5695 (the Residential Energy Efficient Property Credit). It is expected that the IRS will produce new rules related to the recently enacted stimulus legislation, giving taxpayers further guidance on claiming tax credits. To fully understand how the new tax credit may apply to you and what you can do to obtain one, you should consult with a tax professional. Subject to IRS regulations. Customers should consult a tax professional for advice on tax preparation. Qualified products or systems installed during 2009 and 2010 may also qualify for a tax credit equal to 30 percent of the installed costs (up to $1,500).
GUIDELINES
The heating, cooling, water heater or boiler equipment or system must be placed in service‚Äù between January 1, 2011 and December 31, 2011. The IRS defines “placed in service” as when the product is ready and available for use. The heating, furnace, air conditioner, water heater, tankless water heater or boiler must be installed in or on the taxpayers principal residence in the United States.
The tax credit is ONLY available for existing homes.
There is an overall cap of $500 for fiscal years 2006 – 2011 combined. If you have ever claimed this credit in the past, it counts toward the $500 cap (but does not affect the $1500 limit available for 2009 and 2010). So, for example, if you claimed $300 in 2007, you can only claim $200 in 2011; if you claimed $800 in 2009, you cannot claim any more credit.
HOW DO I LEARN MORE ABOUT ABSOLUTE COMFORT’S ENERGY EFFICIENT SOLUTIONS?
Absolute Comfort is committed to providing your family with a system that is tailored to your specific needs. We have a variety of heating, furnace, air conditioning, water heater, tankless water heater, and boiler products from leading brands such as Amana, Carrier, Trane, Rinnai, Rheem, and others that qualify for the tax credit in Colorado Springs.
To download and print the government’s summary of Energy Star products that are eligible for HVAC credits for homeowners, visit www.energystar.gov/taxcredit.
**$300 maximum for a qualifying air conditioning system, heat pump or packaged system, $150 maximum for a qualifying furnace, and $50 maximum for a qualifying product with an advanced circulating fan.
HOW TO CLAIM YOUR TAX CREDIT FOR 2011
Purchase and install a qualifying heating, furnace, air conditioning, water heater, tankless water heater or boiler in your Colorado Springs home between Jan. 1, 2011 – Dec. 31, 2011
Save your proof of purchase along with a copy of the 2011 Manufacturer’s Certification Statement.
When filing your 2011 taxes, use IRS Form 5695 (2011 version) – it will be available late 2011 or early 2012. Consult a tax professional for further details.
To learn the full details regarding the tax credits, talk to your tax professional or visit http://www.energy.gov/taxbreaks.htm for more information.
SPECIAL OFFERS & REBATES
ENERGY STAR® State Appliance Rebate Program
For Colorado program information and FAQ’s visit http://www.energysavers.gov/financial/rebates/state_CO.cfm
Colorado Governor Energy Office Learn More http://www.RechargeColorado.com/
