If your old furnace or water heater are in need of replacement, replacing them with new, energy efficient units will save you money every month through the heating season. Chicago area residents can also save money on the purchase cost of new systems by taking advantage of 2011 federal tax credits on new, energy efficient furnaces and water heaters. The rebates vary depending on the type and efficiency of the unit, but can cover 10% of cost up to $500 or a specific amount from $50 - $300.  

To quality for these savings you must purchase your new furnace or water heater before December 31, 2011. For more information on federal energy tax credits for new, energy efficient furnaces, visit:http://www.energystar.gov/index.cfm?c=tax_credits.tx_index.

2011 Changes to Federal Tax Credits

Federal tax credits on qualifying, high-efficiency HVAC equipment have been modified and extended through December 31, 2011 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This program differs from the program effective in 2009-2010 in the following ways:

The maximum amount an eligible homeowner may receive in tax credits for purchasing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, will be reduced from $1,500 to $500.

The $500 cap is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2010. If you have already claimed credits of $500 or more from improvements made prior to 2011, you will be unable to claim new credits for improvements made during 2011.

All furnaces and boilers, whether natural gas, propane or oil, must have an AFUE of 95 or above to be eligible for the credit.
The credit is no longer 30% of qualified residential energy property costs (including labor), but is now equal to an amount not to exceed:

The State of Illinois is not offering  energy efficiency rebates for home heating or water heaters at this time.

ENERGY STAR® Rated Home Heating Systems

Natural gas, propane and oil furnace style home furnaces can qualify with an AFUE greater or equal to 95. AFUE. AFUE stand for Annual Fuel Utilization Efficiency. Indicated as a percentage, your furnace's AFUE tells you how much energy is being converted to heat. For example, an AFUE of 90 means that 90% of the fuel is being used to warm your home, while the other 10% escapes as exhaust with the combustion gases. The Carrier Performance 95, 96 and Infinity Series furnaces all have a AFUE greater than 95.

ENERGY STAR® Rated Water Heaters

With water heating  accounting for 14%–25% of the energy consumed in the average Chicago area home, choosing an efficient model can have a significant impact on your energy costs.
Gas, oil, propane and electric heat pump water heaters with an Energy Factor greater or equal to  0.82 OR a thermal efficiency of at least 90% can quality for a $300 tax credit.

Remember, the most important day in the life of your furnace or water heater is the day it's  installed. Your ABC Home Comfort Specialist will help you choose right energy efficient furnace or water heater for your family's needs and budget. With a profesional installation and the ABC Worry Free Guarantee, you will be comfortable in knowing that your new furnace or water heater will provide years of efficient, trouble free service.

Making your home more energy efficient is good for your wallet and the environment. And now is the perfect time to make these improvements because many of them qualify for Federal and State of Illinois Home Energy Efficiency Improvement Tax Credits when completed by the end of 2010.

Here are three qualifying upgrades:

1. New Central Air Conditioner

Earn a federal tax credit of 30% of the cost of equipment and installation, up to $1,500 through December 31st 2010, for qualifying split systems and package systems.

2. New Furnace or Boiler

Earn a federal tax credit of 30% of the cost of equipment and installation, up to $1,500 through December 31st 2010, for qualifying natural gas, propane or oil-fired furnaces or boilers.

3. Conventional Hot Water Heater or Tankless Water Heater

Earn a federal tax credit of 30% of the cost of equipment and installation, up to $1,500 through December 31st 2010, for qualifying natural gas, propane or oil-fired storage tank-type or tankless water heaters or electric heat pump water heaters.

Illinois ENERGY STAR® Appliance Rebate Program

In addition to federal tax credits, Illinois is offering the ENERGY STAR® Appliance Rebate Program, funded by the American Recovery and Reinvestment Act and the Illinois Department of Commerce and Economic Opportunity. This program provides incentives for Illinois consumers to replace older appliances with specific residential ENERGY STAR qualified appliances, water heaters, and HVAC equipment.

You must act quickly, this is a limited time program with a set budget. 

ABC can help you choose a qualifying air conditioning,
furnace or hot water heater that best fits your needs.

Call today

800-422-2771

For information on Federal Home Energy Efficiency Improvement Tax Credits, visit: http://www.energy.gov/taxbreaks.htm

For information on the Illinois ENERGY STAR® Appliance Rebate Program, visit: http://www.ildceo.net/dceo/Bureaus/Energy_Recycling/Energy+Star+Rebates/

Disclaimer: ABC does not advise on any tax requirements or issues. Use of any information from this site or any other web site referred to is for general information only and does not represent personal tax advice either express or implied. You are encouraged to seek professional tax advice for personal income tax questions and assistance.