Have you been thinking about upgrading your home heating or cooling systems to more energy-efficient models? Now is the time to act. Not only will a new furnace or water heater help you stay toasty and warm during the often-harsh New Jersey winters, but you can qualify for up to $500 in federal tax incentives if you make these improvements by the end of 2011.
About The 2011 Federal Energy Tax Credits
The 2011 federal energy tax credits give homeowners who make energy-saving improvements to their existing, primary residence credit of up to $500 per product on their 2011 federal tax return. These credits expire on Dec. 31, 2011, and are unlikely to be renewed. Improvements must be made to an existing, owner-occupied dwelling; rental properties, second homes, and newly constructed houses are not covered under this program.
Claiming your credit is easy. Once you have your new products installed, you simply complete IRS form 5695 and fill it in with your 2011 federal tax return. These forms should be available at the beginning of 2012 when other tax forms are distributed. HVAC Products That Qualify A wide variety of heating, ventilation, and air conditioning (HVAC) products are covered under the federal energy tax credit program. Among these are:
Central air conditioning systems
Natural gas, propane, and oil furnaces
Natural gas, oil, and propane water heaters
Electric heat pump water heaters
Advanced main air circulating fans Natural gas, propane, and oil boilers
Many insulation products, such as rolled insulation and house wrap, qualify for additional tax credits. However, it’s important to keep in mind that not all new HVAC products qualify for federal tax incentives, even Energy Star-certified products.
If you’re looking to upgrade your HVAC equipment, contact the friendly pros at Pipe Works Services We’ll help you choose the heating or cooling system that will work best for your home and family. Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems). For more information about energy tax credits and other HVAC topics, download our free Home Comfort Resource guide. Pipe Works Services serves Chatham, NJ, and the surrounding areas.