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2009 - 2010 Tax Credits
Posted: March 2009

     The Stimulus Package. It’s been discussed adnausium, for months. It has been applauded by some, and rebuked by others. Whether or not you’re a supporter you still may want to take advantage of some of its benefits. The bill provides consumers with a rebate, in the form of a Federal tax credit.

     The credit will be available to any taxpayer that 1. Itemizes their deductions; 2. Has the ability to take advantage of a tax credit; and 3. Has a qualified air conditioning or heat pump system installed or replaced, or a furnace installed or replaced. It is valid through December 31, 2010. Oh, there are definitely some rules that you’ll need to follow, but the money is there. You can claim up to $1,500.00 or up to 30% of the total cost of the work.

     Basically, the government will reward you for purchasing high efficiency heating and/or air conditioning equipment. There are rebates for new windows and insulation as well. The specifications are difficult to explain but I’ll give it a try.

     This would be some of the most common examples: If you have a new furnace installed that has an efficiency rating that is higher than 95% AFUE, you’ll qualify for some funds in the form of a Federal tax credit. In regards to air conditioning, if you have a system installed (a system refers to a condenser and cooling coil, the furnace does not need to be included) that attains 16 SEER PLUS 13 EER; you’ll qualify for some funds in the form of a Federal tax credit.     

     The equipment must have a certification number which proves that it qualifies, and there will be a special form, of course. Package units and heat pumps have their own special requirements but will also qualify for the same $1,500.00 in tax credits.

     The benefit to homeowners (besides the tax credit) is that if you’re going to be replacing your equipment anyway, and buy the higher efficiency models, you’ll get back most or all of the money that you’ll spend for the higher efficiency equipment.

     It will also save you money on your utility bills, it will lower the amount of electricity that we all use (foreign oil & all that) plus, the higher efficiency models are usually the top-of-the-line models. This means that they will generally perform better and include the most up-to-date technology.   

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