Tax Credit

New Tax Incentives for Homeowners
Part of the economic stimulus plan passed by Congress made significant changes and improvements to the tax incentives for federal taxpayers who install qualified higher efficiency heating, ventilation, and air conditioning (HVAC) equipment in their primary residences. You may now qualify for tax credits equal to 30% of the costs (up to a $1,500 limit) for installing a high efficiency furnace, boiler, air conditioner, or heat pump. Changes made to the previous tax credits allow you to apply the entire $1,500 limit to a single installation. The old tax credit program limited the amount a taxpayer could apply to $500 and capped certain improvements. But you have to hurry because these tax credits are only available for improvements made in 2009 or 2010. By not taking advantage of this incentive, you just leave money on the table.

Why You Should Consider an Upgrade?
Advances in technology over the last ten years mean that today’s higher efficiency HVAC equipment uses less energy, runs more quietly, and provides improved indoor air quality and comfort. And by using less energy and improved refrigerants, your new HVAC equipment is better for the environment. Most homeowners would like to reduce their energy bills with higher efficiency HVAC equipment, and these tax credits help make the initial investment more affordable. Talk to your ACCA contractor about finding the right qualified equipment that meets your budget. They can show you how much energy (and money) you could be saving over the long term.

Frequently Asked Questions
If I claimed $500 in tax credits in 2006 or 2007 under the previous tax credit program, am I still eligible?
Yes. The new law removes the lifetime caps so you are eligible.

When and how do I claim the tax credit?
Claiming the tax credit is easy— you only need to file a simple IRS 5695 form with your tax return. Speak with your tax advisor. The manufacturer of the equipment will provide a certificate you should keep on file.

Can I claim $1500 in tax credits for improvements made in 2009 and again for improvements made in 2010?
No. You can only claim a total of $1500 in tax credits for improvements made in the combined two year period of 2009 and 2010.

Note: Every taxpayer’s situation is different. We can’t guarantee tax credits, but we can help you figure out what equipment qualifies and how it can work for your comfort, health, and pocketbook.

This information is from the ACCA. The ACCA is the nationwide nonprofit association of professional heating, ventilation, air conditioning,and refrigeration contracting businesses. For more than 40 years, ACCA has provided education and research in support of efficient, safe and healthy heating and cooling systems.