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Questions regarding energy efficiency tax credits (ME)

I heard that in order for a boiler replacement to qualify for tax credits that the appliance must have an AFUE of 95%. If that's the case, none of the boilers I deal will qualify, with the exception of all electric boilers...




  • don_163
    don_163 Member Posts: 67

    would be correct teach and may I add its only good for a 300
    dollars tax credit.

    You can find it all listed if you google energy efficiency taxcredit.

    May I say that it more of advantage for us chillheads.


  • Dave Yates (PAH)
    Dave Yates (PAH) Member Posts: 2,162
    During our Viessmann schooling

    Jim talked about this issue and the confusion surrounding the Fed tax credits (there's a real surprise - the Feds create something confusing!). He mentioned the 95% break-point, but went on to say they must have meant 85% & that there's a move afoot to get the number lowered. Personally, I think 85% is too low. I'd raise that to 90%. With energy reserves coming into question and the US consumption being out of whack with the rest of the world, it's time we became leaders in conservation instead of following from a distance.

    Today's paper has an AP column by Eileen Putman regarding the Fed tax credits and in it states the max credit for furnaces, boilers and A/C equip that qualifies is 10 percent up to a max of $500.00. However, my own research indicated the $300.00 figure is correct. She doesn't give her sources for the info.

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  • ChasMan
    ChasMan Member Posts: 462

    Might be better going with a differential if you want to reduce consumption. If there is no gas available, going from a 50% to an 85% would be better than going from 85% to 90%.
  • Fed Rebate Program

    The AFUE Target for the rebates is 95% indeed. I checked with our Director of Engineering on this who was on the GAMA board at the time this came out. Apparently they won't be paying out too much in rebates for boilers!

    Glenn Stanton

    Manager of Training

    Burnham Hydronics

    U.S. Boiler Co., Inc.
  • Kniggit
    Kniggit Member Posts: 123

    the tax documents for 06 pertaining to this are available through the IRS already and they read Space heating equipment 95% efficient %10 up to $150. Domestic hot water heating with an energy factor of .8 or better 10% up to $300. Air conditioners also have a tax credit available but the seer rating has not yet been determined. 16-18-20-22? but when that is determined the same 10% up to $300

    so in recap
    Furnace/Boiler $150
    Pottable Water Heater $300
    Condenser/Heat-Pump $300
    VFD main circulator fans get a flat out $50

    if you really want a 95% boiler check with Monitor Products about the MZ check the listings published by GAMA they are listed as 95%.

  • S Ebels
    S Ebels Member Posts: 2,322
    I heard....

    I heard there is a $3,000 tax credit for bio fueled (wood, corn etc.) equipment that hits 70% efficiency. True?

    I know Martin Lunde from Garn was having one of his units lab tested in Wisconsin last week to see if it hit that spec. Seems that the Hearth and Patio association or some such organization has the specs rigged to favor gas fired appliances or something so he didn't know if it would hit 70 or not.
  • A.J.
    A.J. Member Posts: 257
    95 %

    So how does this really help our industry ? I think the higher fuel prices will do more than a unattainable A.F.U.E. percentage set by our government.
  • The reason I ask...

    Thanks first of all for everyone for their input. The reason I ask is because I'm getting more and more landlords who want to reduce their energy bill. I know the Federal credit for solar has no cap. I'm wondering if the same is true for boiler retrofits...

    Leave it to the gubernmint to screw this one up...

    I'm bettin' that it gets changed REAL soon. (Efficiency number) If it don't, ol' Pete Caruso is going to be REAL busy. :-) I'm sure he's busy any way, being the American Grandfather to the condensing boiler, and all...

  • Xc8p2dC_2
    Xc8p2dC_2 Member Posts: 150
    State level, too

    In Mass. we have an "energy efficiency upgrade" CREDIT, as well. Can recoup up to 30% or $600 for any product that creates better efficiency, and doesn't have to be 95% Available to homeowners and landlords

    So check state guidelines as well
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