2011 Tax Credit Summary

The Tax Credit is 10% of cost up to $500 or a specific amount from $50 – $300.

Please note, not all ENERGY STAR qualified products qualify for a tax credit. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.

Furnaces:

• Natural Gas – Requires an AFUE >= 95
• Propane Gas – Requires an AFUE >= 95

HVAC: Central Air Conditioning

• Split Systems Require an EER >=13 and SEER >=16
• Package Systems Require an EER >=12 and SEER >=14

Insulation: Owens Corning Blown-In Attic Insulation

• Must meets 2011 IECC Requirements & Amendments

• Must be expected to last 5 years OR have a 2 year warranty
• Its purpose must be to insulate (i.e. insulated siding would not qualify)

Glossary For Above Terms

AFUE – This is a percentage measurement of a furnace’s heating efficiency. The U.S. Government’s minimum efficiency level is 78%. The higher the AFUE value, the more efficient the furnace. The initials stand for Annual Fuel Utilization Efficiency.

EER Rating- This term refers to the energy efficiency ratio. The EER measures cooling system performance at 95ºF. It measures performance on “peak days”—the hottest days, when your air conditioner is working hardest. A higher EER means you’ll get more cooling output for every unit of power input.

SEER Rating- This term refers to the season energy efficiency ratio. A higher SEER means better efficiency and lower energy bills. SEER is calculated by dividing the amount of cooling supplied by the air conditioner or heat pump (Btu’s per hour) by the power (watts) used by the cooling equipment under a specific set of seasonal conditions.

IECC – International Energy Conservation Code (IECC for short). The IECC includes insulation levels for attics, walls, floors, and basements. However, to qualify for the Federal tax credit, homeowners must only meet the level of insulation required for the area they are insulating. For example, a homeowner can choose only to insulate their attic to the levels required in the IECC and still be eligible for the tax credit. For most homeowners, this will mean adding an additional R-19 to R-30 insulation to their attic. If a homeowner insulates part of their home to a level below the IECC, this would not qualify.