Federal Tax Credits for Energy Efficient Home Heating Equipment

On February 17, 2009, The American Recovery and Reinvestment Act of 2009 was passed that made some significant changes to the energy efficiency tax credits. Homeowners installing central air conditioning systems, air source heat pumps, natural gas or propane furnaces, oil furnaces, hot water heaters, hot water boilers, and other designated home improvements can receive up to $1,500 in tax credits for purchasing qualifying equipment.

Click here to read our press release informing homeowners throughout San Diego and Southern California about   these energy efficient tax credits, which are available for systems placed in service in the taxpayer's principal residence from January 1, 0209 through December 31, 2010.

Some of the Highlights Under the New Law are:

• 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 and rentals qualify)

• The maximum credit has been raised from $500 to $1500 for the two years (2009ñ2010). $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.

• Save your receipts and the Manufacturer Certification Statement.

• Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) ó use IRS Tax Form 5695 (2009 version) ó 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.