$1500 Tax Credit
Still available in 2010!

On February 17, 2009, President Obama signed The American Recovery and Reinvestment Act of 2009 (ARRA) giving individuals a tax incentive to make energy-efficient improvements to their home in 2009 and 2010. The following air conditioning and heating systems qualify for this tax credit:

Central Air Conditioning
     Split Systems                SEER >= 16    EER >= 13
     Package Systems          SEER >= 14    EER >= 12

Heat Pumps
     Split Systems                SEER >= 15    EER >= 12.5    HSPF >= 8.5
     Package Systems          SEER >= 14    EER >= 12       HSPF >= 8

Call us today at 727-842-2247 to schedule a FREE no-hassle, in-home consultation! We will provide you with information regarding our qualifying products!

More Information About the Tax Credit

What is the amount of the new tax credit?
For qualified home improvements, homeowners may be able to claim tax credits equal to 30% of the installed costs, up to a total of $1,500.

What is the time frame for the new tax credits?
The new tax credits are retroactive to January 1, 2009, and expire on December 31, 2010. The $1,500 limit is for all improvements made during the two year term, not $1,500 each year.

What's the difference between a tax credit and a tax deduction?
A tax credit applies against the taxpayers' liability. A tax deduction applies against a taxpayer's income, lowering the adjusted gross income and possibly moving the taxpayer to a lower tax bracket.

How do I claim the credit?
The IRS has directed taxpayers to use Form 5695 to claim the credit. Taxpayers are also instructed to keep complete records of their installation and home improvements.

What happens if the 30% of the installed costs is less than $1,500?
The homeowner can "bank" the remaining available tax credit for other qualified improvements. Any single installation that costs more than $5,000 will instantly reach the $1,500 limit.

Does the tax credit apply to the cost of the equipment or equipment plus labor?
Yes, the credit applies to the installed costs of the qualified equipment, which includes labor.

Can I use the entire $1,500 tax credit on a single qualifying home improvement?
Yes. Previous per-appliance caps that limited homeowners to just $150 for a high efficiency furnace or $300 for a high efficiency central air conditioner or heat pump have been removed.

What if I previously claimed tax credits in 2006 or 2007?
Homeowners that previously claimed tax credits in 2006 or 2007 are eligible to claim the full $1,500 limit.

Can I claim $1,500 in tax credits for improvements made in 2009 and again for improvements in 2010?
No. Homeowners may only be eligible for a total of $1,500 in tax credits for improvements made in the combined two year period of 2009 and 2010.

Can I claim the credit for improvements to a second home?
No. The tax credit is only available for improvement to the taxpayer's primary residence.

Will every homeowner definitely qualify for the tax credit?
No. Each taxpayer's situation is different. Please consult with a tax professional if you have questions regarding your tax situation in regards to these new credits.

You can also visit the Energy Star website for more information about the tax credits available.