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2009 and 2010 Federal Tax Credits for Energy Efficient Residential HVAC Equipment

On February 17, 2009, President Obama signed the “American Recovery and Reinvestment Act of 2009 (ARRA)” into law.  This bill combines spending and tax incentives to move the American economy forward by investing in infrastructure and increasing energy efficiency of residential/commercial buildings in America.

 

Specifically for the HVAC business, this legislation makes a number of important changes to the existing tax incentives for homeowners who make qualified improvements on high efficiency HVAC products and equipment in their primary residences.  Overall, the tax credits available have been increased up to 30% of the installed cost of those improvements, or up to a total of $1,500 for residential HVAC products installed from January 1, 2009 through December 31, 2010.

 

The following information has been prepared to help answer those frequently asked questions on this complicated issue of tax credits for residential HVAC equipment.  Before filling for tax credits on any of the listed models, it is always recommended that homeowners/taxpayers consult with a tax professional to review the provisions of the “American Recovery and Revitalization Act of 2009”.

 

The revised criteria for qualifying residential HVAC equipment under Section 1121 of  the ARRA legislation are as follows.

 

1. A natural gas, propane, or oil furnace rated at 95.0% AFUE or higher.

 

2. Any furnace equipped with an advanced main air circulating fan that uses no more than 2% of the total furnace total energy use.

 

3. A central air conditioner that achieves the highest efficiency tier established by the Consortium for Energy Efficiency as in effect on January 1, 2009 (which is 16 SEER or higher, 13 EER or higher rating).  Previously, the criteria were 15 SEER, 12.5 EER which is no longer valid.

 

4. An electric air source heat pump that achieves the highest efficiency tier established for the Consortium for Energy Efficiency as in effect on January 1, 2009 (which is 15 SEER or higher, 12.5 EER or higher, 8.5 HSPF or higher rating).  Previously, the criteria were 15 SEER, 13 EER, 9 HSPF as stated in the text of the legislation rather than being tied to the CEE highest efficiency tier level for electric air source heat pumps.

 

             Tax incentives Assistance Project

             http://www.energytaxincentives.org/general/legislative.php

EVCO Heating & Air Conditioning

(916) 988-8681