Stimulus Tax Credit

As part of an effort to reduce dependence on foreign sources of energy, the American Recovery and Reinvestment Act of 2009 provides a tax credit to help offset the costs of making energy efficiency improvements to your home. Some key details of the program are:

• The tax credits apply to a variety of products (including installation costs) such as windows, doors, heating and cooling equipment and more.
• The amount of the credit is equal to 30% of the installed cost of the qualifying products, up to a total of $500.
• If a qualifying purchase is not large enough to qualify for the maximum credit of $500, the remaining available tax credit can be claimed for additional purchases.
• To take advantage of this tax credit, you must purchase your qualifying products between January 1, 2011 and December 31, 2011.

The reason many homeowners are so excited about this program is because tax credits, unlike deductions, are subtracted directly from the total amount you owe on your personal income taxes. Of course, be sure to check with your tax advisor on how to best take advantage of the tax credits.

Following are the minimum efficiencies required for the tax credit:

Gas Furnaces	95% AFUE
Air Conditioners	16.0 SEER / 13.0 EER
Heat Pumps	15.0 SEER / 12.5 SEER / 8.5 HSPF
Oil Furnaces & Boilers	90% AFUE
Packaged Air Conditioners	14.0 SEER / 12.0 SEER
Packaged Heat Pumps	14.0 SEER / 12.0 SEER / 8.0 HSPF

Important:

You will need a Manufacturer’s Certification Statement to show that a particular unit qualifies for the rebate. The IRS may want proof from you to verify that you qualify for the tax credit. Don’t rely on sales brochures or verbal promises. One of our Comfort Consultants can provide that Certification Statement.