On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009, better know as the Stimulus Act, into law. This bill combines spending and tax incentives to move the American economy forward by investing in infrastructure and increasing energy efficiency of residential and commercial buildings in America.

 

With the passage of this Economic Stimulus Bill, homeowners may be eligible for a tax credit if they purchase certain types of heating, ventilation, and air conditioning (HVAC) systems or make other energy-related improvements to their homes between January 1, 2009 and December 31, 2010.

 

For qualified improvements, homeowners may be able to claim tax credits equal to 30% of the installed cost of those improvements, up to $1,500. The tax credit applies as a direct reduction of taxes owed, and the $1,500 limit is for all improvements made during the two-year term.

 

Since the per appliance caps have been removed by this new legislation, a homeowner may use the entire $1,500 in tax credits for installing a single qualified appliance, such as a furnace, air conditioner, heat pump, etc. up to 30% of the installed cost of that one appliance. Therefore, the “true” cost of your new unit just got lower thanks to the benefits of this limited time tax credit.

 

Taxpayers should keep copies of invoices and receipts for documenting their actual expenditures and only need to file IRS Form 5695 with their tax return to get the tax credits. If you purchase a qualified system from Dyess Heating & Air, we will assist you with providing adequate documentation to claim this valuable tax credit.

 

Contact Dyess Heating & Air today to speak to a Home Comfort Specialist about the Energy Tax Credit. We will assist you in identifying qualifying purchases and equipment, so that you can take advantage of this worthwhile tax incentive before its validity period expires.