2009/2010 Stimulus Information

Now is the best time to upgrade your old, inefficient equipment. By purchasing new HVAC equipment now, you could save $ THOUSANDS OF DOLLARS $ by combining available tax credits and rebates. Information on the tax credit is below. See our coupons link on the right for more information on available manufacturer and utility company rebates.

Federal Government Tax Credit up to $1500

American Recovery and Reinvestment Act of 2009
(2009/2010 Energy Tax Credit Stimulus Plan)

Homeowners may be able to claim tax credits equal to 30% of the installed cost of qualifying energy upgrades up to $1500.00.  Upgrades include high efficient HVAC equipment, windows, doors, roofing, and insulation.

The tax credits are retroactive to January 1, 2009 and expire December 31, 2010.  The $1500.00 limit is for all improvements made during the two year term, not $1500.00 each year. 

Homeowners may use the entire $1500.00 tax credit on a single qualifying improvement, or spread the credit out over several improvements.  The maximum credit is $1500.00 for all qualifying upgrades.

Previous per-appliance caps that limited the homeowner to $150.00 for a high efficiency furnace or $300.00 for a high efficiency air conditioner or heat pump have been removed.

Homeowners that previously claimed tax credits in 2006 or 2007 are eligible for the full $1500.00 limit.

The tax credit is 30% of the installed price (equipment, material, labor, etc…) up to $1500.00

The tax credit will be claimed on your annual tax return using Form 5695.  Please discuss filing procedures and record keeping with your tax advisor.

The tax credit will apply towards the taxpayer’s liability.  It is not a tax deduction that lowers the adjusted gross income.

Ex:  if the taxpayer owes $2000.00 in taxes, the liability would be reduced to $500.00.  if the taxpayer owes nothing, they will receive a $1500.00 refund.

The tax credit can be applied to the taxpayer’s primary residence only.

The tax credit cannot be used for commercial applications.