|
 Pu rchase new high efficiency heating and cooling equipment, including a: furnace, air conditioner, boiler, traditional water heater, and/or an on-demand water heater and receive a tax credit of 30% of the total cost of the new equipment; up to a $1,500 tax credit from the U.S. Government!
Home Energy Efficiency Improvement Tax Credits
Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in the home can receive a tax credit of up to $1,500 for improvements "placed in service" starting January 1, 2009 through December 31, 2010. The ENERGY STAR® website has a complete summary of energy efficiency tax credits available to consumers. For more information please visit the official government website.
AVAC Tax Credits in 2009 Stimulus FAQs
Summary of important HVAC-related tax credits included in the 2009 stimulus package, along with answers to frequently asked questions.
President Obama has signed the American Recovery and Reinvestment Act of 2009 *ARRA) into law. The bill combines spending and tax incentives designned to get the American economy moving again by investing in our nations road and energy infrastructure, and increasing the energy efficiency and performance of America's homes and commercial buildings.
The new law makes important changes to existing tax incentives for homeowners who make qualified improvements of higher efficiency HVAC and water heating equipment to their primary residences.
Residential Tax Credit Details
Larger Tax Credit
For qualified improvements, homeowners may be able to claim tax credits equal to 30% of the installed costs (up to $1,500).
Longer Term
The new tax credits are retroactive to January 1, 2009 and expire on December 31, 2010. The $1,500 limit is for all improvements made during the two year term, not $1,500 each year.
Per-Appliance Caps Removed
Homeowners may use the entire $1,500 tax credit limit on a single qualifying improvement. The previous per-appliance caps that limited the homeowner to just $1`50 for a high efficiency furnace or $300 for a high efficiency central air conditioner or heat pump have been removed.
Lifetime Limit Removed
Homeowners that previously claimed tax credits in 2006 or 2007 are eligible for the full $1,500 limit.
Expanded Geothermal Tax Credits
Homeowners who install geothermal heat pump systems may be able to claim up to 30% of the installed costs in tax credits in the year that system is placed into service. The $2,000 tax credit limit has been removed. The geothermal tax credit has a longer term, from January 1, 2009 and expires December 31, 2016.
The $1,500 limit applies to many types of energy efficient home improvements, including windows and doors, roofing shingles, and insulation.
Frequently Asked Questions
Can the homeowner claim $1,500 in tax credits for improvements made in 2009 and again for improvements made in 2010?
No. Taxpayers may only be eligible for a total of $1,500 in tax credits for improvements made in the combined two year p eriod of 2009 and 2010.
Can a homeowner use the entire $1,500 limit as a credit toward the installation of one appliance?
Yes. A homeowner may use the entire $1,500 in tax credits for installing a singe appliance, such as a qualified furnace, air conditioner, heat pump or hot water heater.
What happens if the 30% of the installed costs is less than $1,500?
The homeowner can "bank" the remaining available tax credit for other qualifed improvements. Any single installation that costs more than $5,000 will instantly reach the $1,500 limit.
|
