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SUMMARY OF TAX CREDITS FOR HOMEOWNERS

Product Category Product Type Tax Credit Specification Tax Credit Notes
HVAC Central A/C Split Systems:
  • EER >=13
  • SEER >= 16

Package systems:
  • EER >= 12
  • SEER >= 14
 30% of cost, up to $1,5002 For a list of qualified products, go to the Consortium for Energy Efficiency product directory, click on the Air Conditioners and in the "CEE Tier" enter "Residential Advanced Tier 3" for CAC Split Systems, and "Residential Tier 2" for CAC package systems and ASHPs.

Note - not all ENERGY STAR products will qualify for the tax credit.

ENERGY STAR Spec (same for CAC and ASHP):
Split Systems:
  • HSPF >= 8.2
  • EER >= 12
  • SEER >= 14.5
Package systems:
  • HSPF >= 8
  • EER >= 11
  • SEER >= 14
Air Source Heat Pumps Split Systems:
  • HSPF >= 8.5
  • EER >= 12.5
  • SEER >= 15
Package systems:
  • HSPF >= 8
  • EER >= 12
  • SEER >= 14
 30% of cost, up to $1,5002
Natural Gas or Propane Furnace AFUE >= 95 30% of cost, up to $1,5002 For a list of qualifying products go to the Gas Appliance Manufacturing Association

Not all ENERGY STAR products will qualify for the tax credit.

ENERGY STAR Spec:
  • Gas Furnaces: AFUE >= 90
  • Oil Furnaces: AFUE >= 85
  • Boilers: AFUE >= 85
Oil Furnace AFUE >= 90 30% of cost, up to $1,5002
Gas, Propane, or Oil Hot Water Boiler AFUE >= 90 30% of cost, up to $1,5002
Advanced Main Air Circulating Fan No more than 2% of furnace total energy use 30% of cost, up to $1,5002 For a partial list of qualifying products go to the Gas Appliance Manufacturing Association
Geo-Thermal Heat Pump Geo-Thermal Heat Pump

Same criteria as ENERGY STAR:

Closed Loop:
  • EER >= 14.1
  • COP >= 3.3
Open Loop:
  • EER >= 16.2
  • COP >= 3.6
Direct Expansion:
  • EER >= 15
  • COP >= 3.5
 30% of the cost - NOT subject to $1,500 cap All ENERGY STAR labeled geo-thermal heat pumps qualify for the tax credit.

Use IRS Form 5695

Must be "placed into service" between Jan. 1, 2008-Dec. 31, 2016.
Water Heaters Gas, Oil, Propane Water Heater Energy Factor >= 0.82 or a thermal efficiency of at least 90%. 30% of cost, up to $1,5002

Not all ENERGY STAR gas storage and gas condensing water heaters will qualify for the tax credit. All ENERGY STAR gas tankless models will qualify.

ENERGY STAR criteria:
  • Gas Storage:
    Energy Factor >= .62
  • Gas Tankless:
    Energy Factor >= 0.82
  • Gas Condensing:
    Energy Factor >= 0.8

For a partial list of qualifying products go to the Gas Appliance Manufacturing Association
Electric Heat Pump Water Heater Same criteria as ENERGY STAR:
Energy Factor >= 2.0		 30% of cost, up to $1,5002 All ENERGY STAR qualified electric heat pump water heaters qualify for the tax credit.
2Subject to a $1,500 maximum per homeowner for all improvements combined.

Marketing

The Federal Tax Stimulus Package has some good news for the HVAC industry:

On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits.

Tax Credits of 30% of cost up to $1500 are available to consumers for 2009 and 2010. Listed below is a basic summary of how your customer can benefit.

More detail will be provided as clarification is received. There are local rebates available in certain areas such as People's Gas and North Shore Gas communities. Ask your Ferguson Heating and Cooling representative for more details.

Important links will be
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