Just-signed tax credit info for 2009-2010.
Now up to a $1,500 tax credit: The new law allows homeowners to take up to a $1,500 tax credit on efficiency improvements including HVAC. The credit is for up to 30% of the installed cost. So, if a high-efficiency outdoor unit cost the homeowner $5,000, he or she could take the entire $1,500 credit on that one piece of equipment. Or, if the system cost $3,000, the homeowner could use $900 of the credit on HVAC and the other $600 on other energy improvements.
Q: When does this go into effect?
A: Immediately. The expanded $1,500 credit is retroactive to the start of 2009. Products that qualified for the existing $500 credit will still qualify for the $1,500 credit if installed prior to February 17. Equipment installed now through December 31, 2010, must meet the minimum requirements outlined here.
Q: Is it a $1,500 credit in both 2009 and 2010?
A: No. $1,500 is the total credit available to primary residence households for 2009 and 2010 for all efficiency improvements, not just HVAC.
Q: What if a customer claimed the $500 efficiency credit previously in 2006, 2007, or 2009?
A: It does not affect this credit. Those same customers are still eligible for the full $1,500 credit for qualified improvements made in 2009 and 2010.
Q: What about replacement jobs in which a 95% AFUE furnace but only a 13 SEER a/c is installed?
A: 30% of the final installation costs, up to $1,500, associated specifically with the furnace will qualify for the credit.
Q: Do these improvements apply to new home construction as well?
A: No. On-site renewables generation such as solar and wind qualify for new construction credits, but not the HVAC credits addressed above.
