Understanding the 2009-2010 Energy Tax Credit
The recently-enacted Economic Stimulus Bill means that homeowners could qualify for a tax credit if they buy certain kinds of heating, ventilation and air conditioning (HVAC) systems if they make energy-saving upgrades to their homes between January 1, 2009 and December 31, 2010.

The high-efficiency heat pumps, air conditioners and gas furnaces on the market today may save homeowners up to 60 percent on their energy bills. Now you can add to that savings by purchasing hvac systems that are eligible for the newfederal energy tax credit as well. Currently there is a Federal energy tax credit of up to $1,500 on your 2009 or 2010 income tax return, depending on the system or product you buy. Keep reading to find out how this new tax credit program works, and how to apply for the tax credit.

The History of the Stimulus Bill
In February of 2009, the President signed the American Recovery and Reinvestment Act (also known as the Economic Stimulus Bill) into law. The bill includes spending and tax credits designed to boost the American economy. It hopes to do this by spending on America’s roads and energy infrastructure, and also by providing tax credits for increasing the energy efficiency of our nation’s homes and commercial buildings.

Which HVAC Products Qualify for the Tax Credit?
It’s important to remember that several of the heat pump, air conditioning systems and high efficiency gas furnaces that Climatech sells may qualify for this tax credit, but not all of them. Please contact Climatech to get a list of the specific HVAC products and systems that are eligible.

How to Apply for Your Tax Credit
Homeowners may qualify for tax credits equal to 30 percent of the installed costs (up to $1,500) for qualified improvements. The tax credit is retroactive to January 1, 2009 and expire on December 31, 2010. Remember, the $1,500 limit is for all the upgrades you make made during the two-year term, NOT $1,500 each year. The tax credit applies as a direct reduction of the taxes you owe.

This is a basic summary of how the Federal energy tax credit works.  This is no substitute for professional tax advice. This tax credit is subject to IRS regulations, so it’s a good idea to check with a professional tax preparer to learn more.

Contact Climatech to Learn More!
With the Federal tax credit there has never been a better time to upgrade your heating and cooling system. Please contact Climatech to get a list of the specific HVAC products and systems that are eligible.