Federal Tax Credits Overview - Gator Air Conditioning

Federal Tax Credits For Energy Efficiency

How has the new Stimulus bill affected the tax credits for energy efficient home improvements?

On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are:

The tax credits that were previously effective for 2009, have been extended to 2010 as well.
The tax credit has been raised from 10% to 30%.
The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
The maximum credit has been raised from $500 to $1500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
The $200 cap on windows has been removed.

SUMMARY OF TAX CREDITS FOR AIR CONDITIONING RELATED UPGRADES

Central A/C	Split Systems: EER >=13 SEER >= 16 Package systems: EER >= 12 SEER >= 14	30% of cost, up to $1,500²	For a list of qualified products, go to the Consortium for Energy Efficiency product directory , click on the Air Conditioners and in the “CEE Tier” enter “Residential Advanced Tier 3” for CAC Split Systems, and "Residential Tier 2" for CAC package systems and ASHPs. Note — not all ENERGY STAR products will qualify for the tax credit. ENERGY STAR Spec (same for CAC and ASHP): Split Systems: HSPF >= 8.2 EER >= 12 SEER >= 14.5 Package systems: HSPF >= 8 EER >= 11 SEER >= 14
Air Source Heat Pumps	Split Systems: HSPF>=8.5 EER >=12.5 SEER >= 15 Package systems: HSPF >= 8 EER >= 12 SEER >= 14	30% of cost, up to $1,500²
Natural Gas or Propane Furnace	AFUE >= 95	30% of cost, up to $1,500²	For a list of qualifying products go to the Gas Appliance Manufacturing Association Not all ENERGY STAR products will qualify for the tax credit. ENERGY STAR Spec: Gas Furnaces: AFUE >= 90 Oil Furnaces: AFUE >= 85 Boilers: AFUE >= 85
Oil Furnace	AFUE >= 90	30% of cost, up to $1,500²
Gas, Propane, or Oil Hot Water Boiler	AFUE >= 90	30% of cost, up to $1,500²

How do I qaulify for the tax credits?

The exact details of what's required to get the tax credit will be released by the IRS. We will post links to the information as soon as it becomes available. At the very least you can expect that you will need adequate documentation as to what was installed and when it was installed. As a bonus to our clients, check here for an offer to guarantee the credit.

More information.

here are some links to sights with more information on the credits. Yes, it's confusing. It has to be, it's the government.

Consortium of Energy Efficiency You can check equipment ratings for qualifying A/C systems.
TIAP The Taxpayers Assitance Project.
U.S. Senate Committee on Energy and Natural Resources
web article From the IRS
Energy Star Detailed information on the Federal energy tax credits.
Economic Stimulas Package If you like "lite" reading and want to read about it yourself, here it is.

****Please understand we know how to keep your home comfortable but we are NOT tax advisors. You should request the council of your tax advisor regarding your specific situation.****