What you need to know to take advantage of the 2009 Stimulus Package
(Every taxpayer situation is different – consult your tax professional for advice
on how these tax credits may impact your situation.)
What is it?
American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law on February
16, 2009 by President Barack Obama. The “stimulus package” includes tax credits
for installation of high-efficiency products and home efficiency improvements. For
more information go to
www.energystar.gov/taxcredits
What qualifies?
The law specifies the type of high energy efficiency equipment which is eligible
for a tax credit. The claim may be made by a taxpayer for their primary residence
on their personal income taxes. (Equipment criteria that qualifies is listed below.)
When is the deadline?
The equipment must be placed in service between January 1, 2009 and December 31,
2010. (There is some equipment for which the tax credits are available through 2016.)
What is the amount of the tax credit?
The credit amount is equal to 30% of the installed cost of qualifying equipment
up to a cumulative amount of $1500 for the two year period not each year.
How do I get the credit?
Simply complete form 5695 and file it with yout 2009 Federal Tax Return
A Manufacturer Certification Statement Is Required
To get the credit you must keep your receipt as well as a Manufacturer Certification
Statement. For all equipment AirNow installs, we will provide you with this certification
statement.
Every situation is different
Please check with your tax professional to see how the tax credits apply to your
particular situation.
Tax Credit verses Tax Deduction
Again, your tax professional is the best person to ask. Generally tax credits have
a greater benefit to a taxpayer than a tax deduction.
Equipment Qualification Criteria
To determine whether equipment qualifies there are two numbers you need to know.
You need to know its SEER and EER rating. These are numbers that quantify energy
efficiency and are established by the government.
- SEER stands for Seasonal Energy Efficiency Ratio. It is a number that describes
the energy efficiency of air-conditioning equipment. A higher SEER means better
efficiency and lower energy bills. SEER ratings are determined in a laboratory under
a set of indoor and outdoor conditions established by the US Department of Energy.
The SEER rating can be used in comparing the performance of equipment from different
manufacturers.
- EER is the efficiency rating for the equipment at a particular
pair of external and internal temperatures.
List of Equipment with its SEER and EER requirements
(This information is provided as a courtesy… qualification for tax credit eligibility
should be confirmed prior to any purchase.)
Electric Heat Pumps – Split Heat Pump
- 15 SEER
- 12.5 EER
-
8.5 HSPF
Electric Heat Pumps - Package Heat Pumps
Central Air Conditioners – Split System
Central Air Conditioners – Package System
Natural Gas Furnace
Oil Furnace
** Note: AFUE = Annual Fuel Utilization Efficiency: This is a measurement used to
rate furnace efficiencies by dividing the ratio of heat output by heat input.