The Story:
Stimulus Package Includes
Major HVAC Tax Credit
On
• New Tax Credit Efficiency
Requirements. The new law changes the HVAC tax credit
efficiency requirements for Split System Air Conditioners, Split System Heat
Pumps, and Packaged Heat Pumps. Refer to summary table below.
• New Tax Credit Dollar Values. The
dollar value of the tax credits has changed significantly. Instead of fixed
dollar values ($300, $150, $50), the credit is now defined as 30% of the
installed cost of qualifying equipment, up to $1500 maximum over both years
2009 and 2010.
• New Dates. The new
credits are available for qualifying products that are “placed in service”
between
Summary (as compared
to previous tax credit):
♦ Higher Tax Credit. The tax credit has increased
from specific dollar amounts--$300, $150, $50--to 30% of installed
cost of qualifying equipment with a maximum credit of $1,500.
♦ Split-System Air Conditioner requirements are
tougher. More qualifying combinations are coming soon.
♦ Small Package Gas/Electric Models. The act is not clear on whether
they qualify and if so, how the credit would be calculated. We are seeking IRS
guidance on this point.
|
Tax Credit |
|
|
Product |
Minimum
Requirements |
|
Split-system
|
16 SEER
& 13 EER |
|
Split-system
Electric |
15 SEER,
12.5 EER & 8.5 HSPF |
|
Packaged |
14 SEER
& 12 EER |
|
Packaged
Electric |
14 SEER, 12
EER & 8 HSPF |
|
Gas Furnace |
95% AFUE |
|
Advanced |
≤ 2% of furnace total energy usage |
|
New Tax Credits At-a-Glance |
|
|
Effective Dates: |
The new
credits are available for qualifying products that are "placed in
service" between |
|
Amount |
30% of the
installed cost of qualifying equipment, up to a maximum of $1,500 total for
both 2009 and 2010. |
|
How to Claim Tax Credit: |
Specific
information on how to claim the tax credit should be obtained directly from
the U.S. Internal Revenue Service. Manufacturer’s Certification Statements should
be provided to the homeowner for their records and to support their Tax
Credit claims for these systems. Contractors should circle or highlight the
system installed in the home as a convenience to the homeowner. |
|
Qualifying |
Product applications
& product combinations that meet these requirements can be found on the
AHRI online database: www.AHRIdirectory.org. Use the minimum
efficiency requirements as search criteria to narrow the search. For
qualifying products, see the Manufacturer's Certification Statements www.GoComfortmaker.com. Click here. |
|
Do
all Energy Star products Qualify? |
No, not
all. The minimum efficiencies for this new tax credit are higher than the
minimum requirements to qualify for the Energy Star designation. Some Energy
Star equipment meets tax credit minimums; some does not. Check the manufacturer's certification statement
carefully before you sell a product with the promise of a tax credit.
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Sources
for more information: |
♦ Energy Star (U.S. Environmental Protection Agency) |