As part of an effort to reduce dependence on foreign sources of energy, the American Recovery and Reinvestment Act of 2009 provides a tax credit to help offset the costs of making energy efficiency improvements to your home. Some key details of the program are as follows: • The tax credits apply to a variety of products (including installation costs) such as windows, doors, heating and cooling equipment and more. • The amount of the credit is equal to 30% of the installed cost of the qualifying products, up to a total of $1,500. • If a qualifying purchase is not large enough to qualify for the maximum credit of $1,500, the remaining available tax credit can be claimed for additional qualifying purchases.
The Economic Advantage of Tax Credits
The reason many homeowners are so excited about this program is because tax credits, unlike deductions, are subtracted directly from the total amount you owe on your personal income taxes. For example, if you complete your tax return and calculate that you owe the IRS $2,000, a tax credit of $1,500 will reduce your tax bill to only $500. Of course, be sure to check with your tax adviser on how to best take advantage of the tax credits. Tax Credits Available in 2009 and 2010
To take advantage of the American Recovery and Reinvestment Act of 2009 tax credits, you must purchase your qualifying high-efficiency comfort system between January 1, 2009 and December 31, 2010. Better yet, your savings won't be limited to a one-time tax credit. You'll continue saving every month with reduced monthly cooling and heating bills. For more information, contact a Harry & Sons today.
Here are some qualifying facts about The 2010 Energy Tax Credit Program
Split system air conditioning efficiency requirements – 16 SEER/13 EER (both efficiency levels must be met to qualify for the tax credit).
Split system heat pump efficiency requirements – 15 SEER/12.5 EER/8.5 HSPF (all three efficiency levels must be met to qualify for the tax credit).
Maximum tax credit amount - $1500. The legislation specifies 30% of the cost of qualifying equipment, including installation costs, subject to a $1500 maximum per homeowner.
The tax credit is effective for all qualified systems installed from 1/1/2009 through 12/31/2010.
The tax credit is only valid for taxpayers that own their home and it is used as the principal residence.
To fully understand how the new tax credit may apply to you and what you can do to obtain one, you should consult with a tax professional for advice on tax preparation, as this tax credit is subject to IRS regulations.
To fully understand how the new tax credit may apply to you and what you can do to obtain one, you should consult with a tax professional for advice on tax preparation, as this tax credit is subject to IRS regulations. 
