The American Recovery and Reinvestment Act of 2009 (the Stimulus Bill) increased tax credits available to homeowners who make qualified energy efficient improvements to their existing primary residences. Homeowners thinking about installing new HVAC system should consider the benefits qualifying equipment would provide at tax time. Not only can these credits lower your tax liability, they can also reduce your energy costs by up to 40% and provide for a cleaner environment.
Homeowners who install qualified furnaces, heat pumps, and central air conditioners in 2009 or 2010 may qualify for a tax credit equal to 30% of the installed costs, up to $1500.
Advancements in HVAC technology, energy efficiency, and performance in the last ten years means that the equipment you buy today can pay for itself in just a few years.
The Stimulus Bill made two important changes to previous homeowner's tax credit programs. The Stimulus Bill removed the $500 lifetime cap from similar tax credits that were available in 2006 and 2007. Homeowners that claimed tax credits in those years may still be eligible for the full $1500 tax credit made available in the stimulus bill.
The Stimulus Bill also made changes to the criteria for equipment that qualifies for the tax credits. It's important to work with your contractor or manufacturer to make sure the equipment you install qualifies.
In order to claim the tax credits, taxpayers complete and file a Form 5695 with their regular tax return. They won't need to submit any more information, but they will be required to keep copies of the certificates provided by the manufacturers or contractors on file. |
