Residential Energy Efficiency Improvements
What is the federal tax credit?
The federal tax credit applies to all energy-efficient home improvements placed in service between January 1, 2011 – December 31, 2011.
The federal tax credit is for 10 percent of the project cost, up to a maximum dollar amount that varies depending on the equipment installed. Consumers can get multiple tax credits for energy efficiency projects, up to a maximum of $500 per house.
How does this differ from the 2010 federal tax credit?
The maximum tax credit per house was lowered from $1,500 to $500. Also, only 10 percent of the project cost qualifies, whereas 30 percent was eligible in 2010.
Taxpayers who claimed energy-efficient tax credits between 2006 and 2010 in excess of $500 are not eligible for additional credits on energy conservation projects they undertake in 2011.
What natural gas equipment is eligible for a federal tax credit?
Qualifying installations include (but are not limited to):
10% of project cost, up to $150:
- Natural gas furnaces (AFUE ≥ 95%)
- Natural gas boilers (AFUE ≥ 95%)
10% of project cost, up to $300:
- Natural gas water heaters (Energy Factor ≥ 0.82 OR a thermal efficiency of at least 90 percent)
NOTE: For the above-mentioned categories, project cost includes the full equipment purchase and installation price.
Other qualifying installations include insulation materials, exterior windows and storm doors, solar water heaters and more! For more information about qualifications, guidelines and a complete listing of tax credits, visit www.energystar.gov/taxcredits.
Piedmont Natural Gas cannot provide customers with tax advice. Please contact your tax advisor for details.
Piedmont Natural Gas is proud to be an ENERGY STAR partner and a corporate member of the U.S. Green Building Council.
