2009 FEDERAL TAX CREDITS
The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law on February 16, 2009, opening the door for heating, air conditioning and indoor air quality customers to receive expanded tax credits. The tax credits apply to the installed costs of qualifying high-efficiency products and home efficiency improvements.
The tax credit is equal to 30% of the installed cost of qualifying heating and cooling improvements, up to a cumulative amount of $1,500 during the two year incentive term. The credit's term is retroactive to the beginning of the year 2009, from January 1, 2009 to the expiration date of December 31, 2010.
Qualifying geothermal products are not subject the $1,500 credit limit. A full 30% credit may be taken on the entire cost of the geothermal improvement. In addition, geothermal products have a longer credit term, expiring December 31, 2016.
How to get the credit:
Use IRS Form 5695 to file for the credit. It is strongly recommended that you consult with a qualified CPA and keep all records and receipts of purchases.
Product Type |
Tax Credit Specs. |
Tax Credit |
Geothermal |
Closed Loop
14.1 EER
COP 3.3
Open Loop
16.2 EER
COP 3.6
Direct
Expansion
15 EER
COP 3.5 |
30% of the cost
30% of the cost
30% of the cost |
| Natural Gas or Propane Furnace |
95% AFUE |
30% of cost, up to $1,500 |
| Natural Gas or Propane Hot Water Boiler |
90% AFUE |
30% of cost, up to $1,500 |
| Oil Furnace or Oil Boiler |
90% AFUE |
30% of cost, up to $1,500 |
| Electric Heat Pumps |
Split Heat Pumps
15 SEER
8.5 HSPF
Package Heat Pumps
14 SEER
8 HSPF |
30% of cost, up to $1,500
30% of cost, up to $1,500 |
| Central Air Conditioners |
Split System
16 SEER
Package System
14 SEER |
30% of cost, up to $1,500
30% of cost, up to $1,500 |
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