On February 17, 2009, President Obama signed a stimulus bill that included HVAC tax credit incentives. Congress set the maximum tax credit amount at $1500 to help stimulate energy conservation through the installation of high efficiency heating and cooling systems. We have included a summary of the bill as it applies to residential HVAC equipment:
- 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).
- Gas furnace qualifying levels – 95% AFUE.
- Packaged A/C, H/P, or dual fuel products – 14 SEER, 12 EER, 8 HSPF.
- 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 a home that is owned by the taxpayer and used as the principle residence.
The legislation that passed was for a tax credit equal to 30% of the total cost up to a maximum of $1500; however, the IRS is responsible for the actual implementation of the legislation.
For more information about HVAC tax credits and how they will be applied, download this information packet (PDF) released from Trane.
