tax credits brownsburg indianaIt won’t fit in a stocking, and you can’t even wrap it, but this is one gift you will continue to be thankful for, through the spring of 2012 when you file your U.S. federal income taxes.This gift is courtesy of the U.S. Department of Energy in the form of 2011 tax credits to homeowners who make energy-efficient upgrades to their HVAC (heating, ventilation and air conditioning) systems by December 31, 2011. With this deadline looming, you may not be able to afford putting off these upgrades much longer.

After all, the department estimates that the average household spends about $2,200 a year on energy expenses. So if you’re in the market for new energy-efficient HVAC components, you should consider the tax credits that the federal government is offering. These tax credits apply to products that will make your home’s HVAC system function optimally and economically well into 2012 and for years to come.

The tax credits cover central air-conditioning units, water heaters and heat pumps, and include up to:

  • $300 for an air-conditioning unit and electric heat pump; $150 for a boiler or furnace; and $50 for an advanced main air-circulating fan.
  • $300 for a gas, oil or propane water heater or an electric heat pump water heater.
  • $300 for a biomass stove.
  • 30 percent of the cost of a geothermal heat pump.
  • 30 percent of the cost of a solar water heater or a photovoltaic system, which provides electricity.
  • 30 percent of the cost of a wind turbine.
  • 30 percent of the cost, but no more than $500, for a fuel-cell system.

Note that there are specific eligibility requirements for the various tax credits, which you’ll need to claim on the Internal Revenue Service’s form 5695 for Residential Energy Credits. Additionally, you may be eligible for other credits and rebates in your area, and there also are federal tax credits that are available through 2016.

Energy Star doors and skylights also are eligible for tax credits, or up to 10 percent of the cost, up to $500. Credits for new, insulated windows (which can be the biggest perpetrators of heat loss) are capped at $200. The department also is offering tax credits on metal and asphalt roofing and insulation.

As we’ve done for other Indianapolis area homeowners, Mowery Heating and Cooling can help you determine the eligibility rules for these improvements, and assist you with your selection of products. We also will provide you with a manufacturer certification statement, which you need to attach to your 2011 taxes. Obviously, the clock is ticking, so call Mowery’s today to schedule your appointment.

Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems). 

Mowery services the Brownsburg, Indiana and the surrounding areas. Visit our website to see our special offers and get started today!     

Photo courtesy of Shutterstock.