Hochstedler Energy Systems, Inc.: Tax credits or rebates

The American Recovery and Revitalization Act of 2009 provides homeowners a significant tax incentive to make improvements to the overall energy efficiency of their homes, including their HVAC systems.
Specifically, this law provides federal income tax credits for qualifying, high efficiency gas furnaces, air conditioners, electric heat pumps, oil furnaces, and boilers placed in service during 2009 and 2010. The tax credit is for 30% of the installed cost, up to $1,500 for installations including one or more of the following pieces of equipment.
* Gas furnaces with an AFUE rating of 95 or higher.
* Split air conditioners with efficiency ratings of 16 SEER/13 EER or higher.
* Split heat pumps with efficiency ratings of 15 SEER/12.5 EER/8.5 HSPF or higher.
* Packaged air conditioners with efficiency ratings of 14 SEER/12 EER or higher.
* Packaged heat pumps with efficiency ratings of 14 SEER/12 EER or higher.
* Packaged heat pumps with efficiency ratings of 14 SEER/12 EER/8 HSPF or higher.
For geothermal systems, the tax credit is 30% of the installed cost with no limit.
The 2009 Stimulus Plan also provides funding of $300 million to the Energy Efficient Appliance Program, which is administered by the states and provides financial incentives to customers purchasing ENERGY STAR appliances, HVAC equipment with ENERGY STAR efficiency ratings qualify and may also be eligible for utility rebates and/or state and local tax incentives.
Check with your tax professional for more information.
You may also contact :
Public Information - IRS
Internal Revenue Service
1111 Constitution Avenue
Washington, DC 20224
(800) 829-1040
Web site: http://www.irs.gov

Or visit :
www.energystar.gov
www.energytaxincentives.org
www.dsireusa.org

	Can a homeowner claim credits for improvements to a second home, such as a vacation home?
	No, the tax credit program is only available for improvements made to the taxpayer's primary residence or home, and may not be used for second or vacation homes.

	Who do I contact if I have questions about the Federal tax credit?
	Please contact your accountant or tax professional. We are not responsible for the information provided. We are just passing along the information provided to us.

	What's the difference between a tax credit and a tax deduction?
	A tax credit applies directly against the taxpayers' liability. A tax deduction applies against a taxpayers' income, lowering the adjusted gross income and possibly moving a taxpayer to a lower tax bracket.... [ read more ]

	Can a homeowner claim $1500 in tax credits for improvements made in 2009, and then again claim tax credits for more improvements made in 2010?
	No, taxpayers are eligible for a total of $1500 in tax credits for improvements made over the combined two year period.