On February 17, 2009, President Obama signed the stimulus bill American Recovery and Reinvestment Act.
If you have looked into the stimulus incentives, then you know how complicated they are. We are here to help you sort through the details to benefit you most.
Homeowners who install qualified air conditioning units or attic insulation between January 1, 2009 – December 31, 2010 may qualify for this credit. This credit may qualify for 30% off the installation cost (up to $1500 per household).
Below is a list of eligible home heating/cooling equipment, as well as, insulation that Air Squad can provide for you.
Insulation and Sealing – Added insulation to walls, ceiling, or other parts of the building envelope and sealing ducts and cracks in the building shell to reduce infiltration and heat loss, as specified in the 2009 IECC model energy code.
Furnaces – High-efficiency gas, natural gas, and propane furnaces that meet an Annual Fuel Use Efficiency (AFUE) of 95 or higher and gas, oil, or propane boilers and oil furnaces that meet an AFUE of 90 or higher.
Air Conditioners & Heat Pumps – Central air conditioning units must meet the highest tier standards set by the Consortium for Energy Efficiency (CEE) as of January 1, 2009, which for most systems in a Seasonal Energy Efficiency Ratio (SEER) of 16.
Geothermal Heat Pumps (or ground source) – These are similar to ordinary heat pumps, but instead of outside air as the source of heat, they rely on the stable, even heat of the earth to provide heating and air conditioning. Starting in 2009, geothermal heat pumps are eligible for the tax credit, for 30% of the cost with no maximum. This tax credit is valid until December 2016.
Fans – High-efficiency fans for heating and cooling systems that use no more than 2% of total heating system energy use, as defined by DOE test procedure.
A tax credit means that you offset your tax liability. For example, if you were eligible to take the maximum $1,500 energy tax credit on a new comfort system installation, it would reduce your tax liability (the amount you owe in taxes) by $1,500. That’s a lot better than it being used as a deduction where you’d simply reduce your taxable income by $1,500 and then calculate the tax liability on the taxable income.
There is no upper or lower limit on income for the energy efficient tax credits…but if you do not pay any taxes, then you cannot get the credit.
Every taxpayer’s situation is different. Therefore, it’s recommended that homeowners consult with a tax professional to review the provisions of the “American Recovery and Reinvestment Act of 2009” (ARRA). Taxpayers should also keep copies of invoices and receipts for documenting their actual expenditures.
The official Energy Star site contains very useful information regarding the Federal Tax Credits for Energy Efficiency.
We know there is a ton of information to sort through. We are here to walk you through this process. Shoot us an email or give us a call to schedule an air conditioning upgrade or if you simply have questions for us.