Federal Tax Credits for Energy Efficiency

 

                                                                            Tax break for select AirEase equipment.
                                                     

                                                  When you purchase an AirEase high-efficiency air conditioner and/or heating system.

                                                         you may qualify for a tax credit under the U.S. Energy Policy Act of 2005.

 

                 Unlike a tax deduction, which reduces the amount of income subject to tax, a tax credit reduces the tax itself.

             The tax credits that apply to qualifying AirEase air conditioning and heating equipment are available for products placed

             in service from January 1, 2009 through December 31, 2010.

 

Tax credits are available at 30% of the cost, up to $1,500, in 2009 & 2010 (for existing homes only):

  • must be "placed in service" from January 1, 2009 through December 31, 2010
  • must be for taxpayer's principal residence
  • $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements.
  • EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and windmills which are not subject to this cap, and are in effect through 2016
  • must have a Manufacturer Certification Statement to qualify
  • for record keeping, save your receipts and the Manufacturer Certification Statement
  • improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010
  • If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters. 

 

 

Installation costs ARE COVERED for:

  • HVAC (Heating, Ventilation and Air Conditioning) systems
  • Biomass Stoves
  • Water Heaters (including solar)
  • Solar Panels
  • Geothermal Heat Pumps
  • Wind Energy Systems
  • Fuel Cells

The tax credit for HVAC, biomass stoves, and non-solar water heaters is 30% of the total cost (product + installation) up to $1,500. The law specifies installation costs include: "expenditures for labor costs properly allocable to the on site preparation, assembly, or original installation of the property."

The tax credit for solar water heaters, solar panels, geothermal heat pumps, wind energy systems, and fuel cells is 30% of the total cost (product + installation), with no upper limit. The law specifies installation costs include: "labor costs properly allocable to the on site preparation, assembly, or original installation of the property and for piping or wiring to interconnect such property to the home."