Tax Credit information for the rest of us:
The federal government has been providing money for increasing the energy efficiency of your home for some years now, this article will give you clear direction in understanding how it applies to you for this tax season.
The HVAC equipment that you choose to purchase and install in your home must meet certain criteria to be eligible for the tax credit. The furnace must be 95% efficient or better, the air conditioner must be 16 SEER or higher with a 13 EER or higher. These numbers are used to rate the efficiency of the equipment. The way to understand these ratings is to keep in mind that the higher the number the more efficient it is; if the equipment is “energy star” rated then it will qualify. There is equipment manufactured lower than these ratings, but these are the numbers you must keep in mind if you want to qualify for the tax credit.
The cost of the installation must exceed $5000 because the credit is awarded at 30% of the install cost or $1500; whichever is the lowest amount. Note the “install” cost when choosing equipment. Some companies will break out the cost of the equipment from the labor costs. The IRS is only concerned with the “install cost”, so ask your contractor to give you an invoice that does not separate them because often the cost of installation will be well below $5000 – which will leave you with less money!
This tax credit is only a “one-time” deal for your home. So, if you are considering getting the tax credit from replacing the windows, insulation, or other areas, there is only $1500 available for the life of your home. The other thing to keep in mind is that this “program” will be over at the end of 2010. So, if you are seriously considering it, don’t let procrastination be your friend!
If you use Access Heating & Air Conditioning, we will provide you with a manufacture certification that states the model number of the furnace or air conditioner which you will use when filing your taxes. You will need to file the 2009 IRS form 5695 and submit both of these with your 2009 taxes (by April 15th, 2010); the residential energy tax credit is claimed on line 52 of form 5695.
Many homes are too big for the size of the air conditioner to qualify for the tax credit, so we will often get the homeowner their tax credit by installing a 95% efficient furnace.
Access Heating & Air Conditioning, Inc. is the most knowlegable HVAC company in Boise and Meridian. So give us a call and we can help you get the money that is available to you!