Tax Incentives for Heating and Air Conditioning
The passage of the American Recovery and Reinvestment Act of 2009, consumers are able upgrade to more energy-efficient heating and air conditioning equipment. They can start saving on energy bills right away, and you may also save on your taxes next year. For your home, these benefits can include lowering home energy bills, increasing your indoor comfort, and reducing air pollution. These programs are helping savvy consumers’ lower energy bills in their home. The energy-efficient products that are eligible for the new federal tax credits can lower the amount of federal income taxes that many taxpayers must pay Uncle Sam.
There are some new potentially lucrative tax incentives for energy-efficient and renewable-energy home improvements. These may offer some consolation to many homeowners who feel they are getting forgotten with the government's various economic stimulus efforts.
There is a $1,500 energy-efficient credit, which currently will last only last two years, meaning consumers will have to find a way to spend this money during this economic downturn. Homeowners now have a new opportunity to lower their energy costs and save on their 2009 federal income taxes by making specific energy efficiency upgrades to their homes.
There is also a new tax credit that will be effective 2009 through 2016 for 30 percent of the cost of a qualified geothermal heat pump. This can be for up to $2,000. These caps do not apply to certain alternative energy systems like geothermal heat pumps, solar water heaters, wind power, or photovoltaic systems. The benefits for installing some pricier solar technology, small wind-energy systems or geothermal-well systems can include a tax credit of 30% for qualifying expenditures with no upper limit through 2016. In order for you to claim your credit, the energy efficient improvements you must use qualifying Energy Star rated products and they must be started up sometime between from January 1, 2009 through December 31, 2010.
By doing your research and talking with your heating and air conditioning professional you may be able to save a substantial amount of money and get some great home improvements at the same time.
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