President Obama signed into law an $858 billion dollar tax relief and benefits package which includes.
- A two year extension of the current tax rates.
- An extension of federal unemployment benefits for 13 months.
- Setting a two-year Estate Tax at 35% for individual inheritances over $5 million.
- A 2% reduction in an employee’s contribution to Social Security. Employer’s contributions to Social Security will remain at current levels.
Also included in the tax bill is a one-year extension of the 25c tax credit, which is returned to pre-stimulus levels. Some specifics of the bill as they relate to 25c.
- Eligible taxpayers can claim up to $500 in 2011.
- All efficiency levels stay at the current levels, except for natural gas and propane hot water boilers, and oil hot water boilers or oil furnaces, which will move to 95% AFUE.
- An individual or household lifetime cap of $500, which dates back to January 2006. For example, if an individual has claimed the 25c tax credit since 2006, for any qualifying upgrade up to or over $500, they would be ineligible to claim the credit in 2011.
- As of January 1, 2011, the new credit levels will be:
o $50 for any advanced main air circulating fan
o $150 for any qualified natural gas, propane or oil furnace or hot water boiler.
o $300 for any item of energy-efficient building property (i.e. Central Air/ Heat Pumps)
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