Tax Credit Plan
As part of the President’s American Recovery and Reinvestment Act of 2009 (ARRA), homeowners are eligible for Tax Credits. These Tax Credits can be up to 30% of the installed cost of qualifying new, high efficiency heating & cooling equipment, with a maximum credit of $1500.
Tax credits are available for HVAC improvements made during 2009 and 2010. Improvements made during 2008 are not eligible.
The credit expires 12/31/10.
What is a Tax Credit?
You receive an income tax credit when filing your Federal Income Tax at the end of the year. The credit then increases the tax refund you receive or decreases the amount of Federal Tax you have to pay.
What types of equipment qualify?**
| Equipment Type | Minimum Energy | Efficiency Standard |
| Electric Air Source Heat Pumps: | Split Heat Pump | Package Heat Pump |
| 15 SEER | 14 SEER | |
| 12.5 EER | 12 EER | |
| 8.5 HSPF | 8 HSPF | |
| Central Air Conditioners: | Split System | Package System |
| 16 SEER | 14 SEER | |
| 13 EER | 12 EER | |
| Natural Gas Furnace: | 95% AFUE |
How Do I Apply for the Tax Credit?
File the appropriate IRS form with your taxes, including receipts verifying purchase of the qualifying equipment and a copy of Manufacturer’s certification. Manufacturers will certify (in packaging or on company website) which of their products qualify for the tax credit.
The IRS will make final decision on what equipment qualifies for tax credits.
**The equipment is eligible if installed in a new home or existing home used as the taxpayer’s principal residence.
If installed in a new home, it is likely that the Tax Credit cannot be applied if applying for a “new home credit” with the IRS.
Resources: Internal Revenue Service, www.irs.gov. Department of Energy, www.energy.gov, Alliance to Save Energy, www.ase.org. Informational purposes only.
Refer to sources listed for complete details.
