TAX CREDIT INFORMATION

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Tax Credits for Consumers:

Home Improvements

Tax credits are now available for home improvements:

must be placed in service from January 1, 2009 through December 31, 2010
must be for taxpayer's principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes qualify)
$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 small wind energy systems 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 energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.

Tax Credit FAQ�s

The following information is provided as a quick, general reference for questions relating to the American Recovery and Revitalization Act of 2009 (ARRA) as it relates to tax credits involving heating and cooling products or systems installed in residential, single-family homes. Conditions vary regarding eligibility for claiming tax credits so it is strongly suggested that interested homeowners consult a tax professional. Additional information can be found at www.energystar.gov.

What are the minimum qualifying criteria for residential heating and cooling systems to receive tax credits?

The criteria for qualifying residential heating and cooling systems and products under Section 1121 of the ARRA legislation are as follows.

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

- A central air conditioner that achieves 16 SEER or higher and 13 EER or higher rating

- An electric air source heat pump that achieves 15 SEER or higher and 12.5 EER or higher, 8.5 HSPF or higher rating.

Package systems:
HSPF >= 8
EER >= 12
SEER >= 14

What are the program dates for tax credits?

The current guidelines suggest that any qualifying heating or cooling product or system must be placed in service from January 1, 2009 through and including December 31, 2010.

How do homeowners claim the tax credits?

Before filling for tax credits on any qualified heating and cooling product or system, it is always recommended that homeowners consult with a tax professional to review the provisions of the ARRA. Taxpayers should keep copies of invoices and receipts to document their actual expenditures and copies of the heating and cooling equipment manufacturer�s certification statement certifying that the equipment qualifies for the tax credit.

What is a non-refundable tax credit?

Most, but not all, tax credits are referred to as non-refundable credits. A non-refundable credit is a tax credit that can reduce your tax liability to zero (0), but not below. You must have tax liability to claim a non-refundable tax credit.

Can a homeowner claim a total of $1500 in tax credits for improvements made during 2009, and then claim tax credits of up to $1500 for more improvements made in 2010?

No, homeowners are eligible for a total of up to $1500 in tax credits for improvements made over the combined two year period. Claims made beyond the $1500 tax credit limit are not eligible.

What if 30% of the installed cost is less than the $1500 limit?

The homeowner can maintain the remaining amount of the available tax credit towards the cost of other qualified improvements during the two year period. Any single qualifying product for which the installed cost is more than $5000 will instantly reach the $1500 limit.

Does the tax credit apply to the cost labor to install the qualifying system or product?

Yes, the tax credit applies to the installed cost of the equipment that qualifies for the tax credits, and includes labor cost associated for that specific installation.

Can a homeowner use the $1500 tax credit towards a single heating and cooling system or product installation?

Yes, a homeowner may use the entire $1500 in tax credits for installing a single qualified heating and cooling system or product, such as a furnace, an air conditioner, or a heat pump.

Can a homeowner claim tax credits for improvements to a home that isn�t their primary residence?

No, the tax credit program is only available for improvements made to the taxpayer�s primary residence or home.

Do "Energy Star" Certified products meet the requirements for these tax credits?

Most ENERGY STAR rated heating and cooling systems or products do meet the criteria for ARRA tax credits, but not all of them do. Please refer to the qualifying criteria as displayed on the Energy Star website and the criteria for the federal tax credits at www.energystar.gov.

Are all heating and cooling systems or products eligible for tax credit qualification?

No. The homeowner will need to make this determination. The installing dealer/contractor will likely not have complete information regarding the homeowner�s specific tax credit claims to date. The installing dealer/contractor should always advise homeowners to refer to the applicable IRS forms and regulations.

What if a homeowner has already claimed tax credits under the provisions of the Emergency Economic Stabilization Act of 2008 for 2009 that may no longer qualify for tax credits?

The ARRA replaces all of the provisions of any previous tax incentives for qualifying heating and cooling products and systems. Refer to the appropriate IRS rules, regulations, and information for full details.

LINKS FOR CERTIFICATES BELOW

http://www.ahridirectory.org/ahriDirectory/pages/hp/defaultSearch.aspx

ALL SYSTEMS ON OUR SITE THAT HAVE THIS PICTURE QUALIFY FOR TAX CREDIT

SUMMARY OF TAX CREDITS FOR HOMEOWNERS
Product Category	Product Type	Tax Credit Specification	Tax Credit	Notes
Insulation	Insulation	Meets 2009 IECC & Amendments	30% of cost, up to $1,500¹	For insulation to qualify, its primary purpose must be to insulate (example: insulated siding does not qualify). Check to see if you have Home Performance with ENERGY STAR in your areas. Adding insulation to your home is covered.
Windows & Doors	Exterior Windows and Skylights	Before June 1, 2009: Must meet ENERGY STAR criteria After June 1, 2009: U factor <= 0.30 SHGC <= 0.30	30% of cost, up to $1,500¹	Not all ENERGY STAR labeled windows and skylights qualify for tax credit. More information
	Storm Windows	In combination with the exterior window over which it is installed: has a U-factor and SHGC of 0.30 or below Meets the IECC	30% of cost, up to $1,500¹	FAQ on storm doors and storm windows.
	Exterior Doors	Before June 1, 2009: Must meet ENERGY STAR criteria After June 1, 2009: U factor <= 0.30 SHGC <= 0.30	30% of cost, up to $1,500¹	Not all ENERGY STAR doors will qualify. More information
	Storm Doors	In combination with a wood door over which it is installed: has a U-factor and SHGC of 0.30 or below Meets the IECC	30% of cost, up to $1,500¹	FAQ on storm doors and storm windows.
Roofing	Metal Roofs, Asphalt Roofs	All ENERGY STAR qualified metal and reflective asphalt shingles	30% of cost, up to $1,500¹	FAQ on roofs that qualify for the tax credit
HVAC	Central A/C	Split Systems: EER >=13 SEER >= 16 Package systems: EER >= 12 SEER >= 14	30% of cost, up to $1,500¹	FAQ on Central ACs that qualify for the tax credit FAQ on Air Source Heat Pumps that qualify for the tax credit Note � not all ENERGY STAR products will qualify for the tax credit. View ENERGY STAR criteria.
	Air Source Heat Pumps	Split Systems: HSPF >= 8.5 EER >= 12.5 SEER >= 15 Package systems: HSPF >= 8 EER >= 12 SEER >= 14	30% of cost, up to $1,500¹
	Natural Gas or Propane Furnace	AFUE >= 95	30% of cost, up to $1,500¹	FAQ on Furnaces and Boilers that qualify for the tax credit Note � not all ENERGY STAR products will qualify for the tax credit. View ENERGY STAR criteria for furnaces, boilers.
	Oil Furnace	AFUE >= 90	30% of cost, up to $1,500¹
	Gas, Propane, or Oil Hot Water Boiler	AFUE >= 90	30% of cost, up to $1,500¹
	Advanced Main Air Circulating Fan	No more than 2% of furnace total energy use.	30% of cost, up to $1,500¹	Read this FAQ if the fan qualifies, but the furnace does not.
Water Heaters	Gas, Oil, Propane Water Heater	Energy Factor >= 0.82 or a thermal efficiency of at least 90%.	30% of cost, up to $1,500¹	FAQ on Water Heaters that qualify for the tax credit View ENERGY STAR criteria for water heaters.
Water Heaters	Electric Heat Pump Water Heater	Same criteria as ENERGY STAR: Energy Factor >= 2.0	30% of cost, up to $1,500¹
Biomass Stove	Biomass Stove	Stove which burns biomass fuel to heat a home or heat water. Thermal efficiency rating of at least 75% as measured using a lower heating value.	30% of cost, up to $1,500¹	FAQ on biomass stoves.
Geo-Thermal Heat Pump	Geo-Thermal Heat Pump	Same criteria as ENERGY STAR: Closed Loop: EER >= 14.1 COP >= 3.3 Open Loop: EER >= 16.2 COP >= 3.6 Direct Expansion: EER >= 15 COP >= 3.5	30% of the cost	All ENERGY STAR geo-thermal heat pumps qualify for the tax credit. Must be �placed into service� before December 31, 2016.
Solar Energy Systems	Solar Water Heating	At least half of the energy generated by the �qualifying property� must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household. The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling. The system must be certified by the Solar Rating and Certification Corporation (SRCC).	30% of cost	All ENERGY STAR solar water heaters qualify for the tax credit. Must be placed in service before December 31, 2016.
Solar Energy Systems	Photovoltaic Systems	Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.	30% of cost	Must be placed in service before December 31, 2016.
Small Wind Energy Systems	Residential Small Wind Turbines	Has nameplate capacity of not more than 100 kilowatts.	30% of cost	Must be placed in service before December 31, 2016.
Fuel Cells	Residential Fuel Cell and microturbine system	Efficiency of at least 30% and must have a capacity of at least 0.5 kW.	30% of the cost, up to $500 per .5 kW of power capacity	Must be placed in service before December 31, 2016.
Cars	Hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles		Based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models	There is a 60,000 vehicle limit per manufacturer before a phase-out period begins. Toyota and Honda have already been phased out. Credit is still available for Ford, GM and Nissan. For more information visit: Fueleconomy.gov Use IRS Form 8910 for hybrid vehicles purchased for personal use. Use IRS Form 3800 for hybrid vehicles purchased for business purposes.
Cars	Plug-in hybrid electric vehicles		$2,500�$7,500	The first 250,000 vehicles sold get the full tax credit (then it phases out like the hybrid vehicle tax credits). Effective January 1, 2009.