West Michigan Heating and Cooling Tax Credits For Energy Efficiency
![]() The provisions of the 2009-2010 American Recovery and Reinvestment Act (ARRA) tax credits expired on December 31, 2010, giving way to new limits and guidelines as outlined in Section 25c, the Tax Relief, Unemployment Insurance Re-authorization and Job Creation Act of 2010. What changed, and what are the new parameters? Effective dates: January 1 through December 31, 2011 Maximum amount eligible for claim: 10% of eligible costs up to maximum of $500. But there are varying limits, depending on what the energy improvement is, plus homeowners must meet the eligibility requirements as well (see below). Homeowner eligibility: Since the credits have reverted to lifetime caps, homeowners who have claimed $500 or more in Section 25c tax credits since 2005 are ineligible for Section 25c credits in 2011. Plus, as before, installation must be on homeowner's primary home. Efficiency ratings: Section 25c increases the qualifying standards for oil furnaces and natural gas, oil or propane hot water boilers to 95% AFUE. The qualifying standards for natural gas and propane furnaces remain at 95% AFUE. Eligible Equipment• Central Air Conditioners: 16 SEER and 13 EER = $300 credit • Heat Pumps: 15 SEER and 12.5 EER = $300 credit • Natural Gas Furnaces: 95% AFUE = $150 credit • Advanced Main Air Circulating Fan: ECM Blower = $50 credit • Ductless Split System Heat Pumps: 15 SEER, 8.5 hspf, 12.5 EER = $300 credit • Ductless Split System Air Conditioners: 16 SEER, 13 EER = $300 credit • Water Heaters: EF of 82+ = $300 credit Section 25c also includes provisions for building envelope improvements, including insulation materials and systems, exterior doors and windows, and pigmented metal or asphalt roofs. Read more from DSIREusa.org. Note that the material on this site includes provisions for the ARRA tax credits which just expired, as well. What about solar and geothermal? The tax credits for qualifying solar and geothermal products remain at the previous 30% levels through December 31, 2016, and have no cap. Products included in this segment can be installed in new or existing homes, and include items on the following list. ![]() For more details about solar and geothermal incentives, visit EnergyStar.org. • Geothermal Heat Pumps • Solar Panels • Solar Water Heaters • Small Wind Energy Systems • Fuel Cells Products Eligible for Tax Credits Through 2016 Tax credits for geothermal heat pump, solar energy systems, wind energy systems, and fuel cells are available at 30% of the cost, with no upper limit, through 2016. Geothermal Heat Pump Credit: 30% of cost, with no upper limit When and Where: • Must be "placed in service" by Dec. 31, 2016 • Primary residences. Vacation homes eligible for partial credit; no rentals. • New and existing homes |
Tax Credit FAQ
How much will each state receive to fund its program? Each state will receive an amount proportionate to its population compared to the total U.S. population, with a floor of no less than $100,000. How long will the rebate programs last? The rebate program will continue as long as the states and territories have money to support it. While they have until February 2012 to spend the money, it is likely that the money will go quickly. States and territories must indicate how they intend to notify consumers when the funding for rebate program is exhausted. Who is eligible for a rebate? The program is for consumers. Each state will specify exactly who is eligible to participate in its program, and some states are likely to limit rebates to only certain types of consumers, e.g., low-income. Do I have to turn in my old appliance to be eligible? Only purchases that replace an existing appliance are eligible for a rebate. DOE is strongly encouraging the recycling of old appliances purchased under the program. See the ENERGY STAR Recycling page for more information on appliance recycling. Can I get more than one rebate from my state? Each state will decide if consumers will be eligible for more than one rebate when purchasing appliances covered in the program. What are the rebate amounts? Each state and territory will choose dollar amounts for the products selected. Amounts could range from $50 to $250, depending upon the product being purchased, the purchase price, and other potential market factors. |
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