Air Conditioning Repair | Serving Lawrenceville, Grayson and Metro Atlanta| A/C Service | EdensHVAC.com

The American Recovery and Reinvestment Act of 2009
or
The Stimulus Bill

If you need a new Furnace or Air Conditioner or Both this bill combines spending and tax incentives to help get the Economy going by providing work and save energy by getting people to invest in High Efficiency units.

Below are a few questions I have been asked and the answers I have been able to find out. But if you have any questions please ask your tax advisor.

What’s the difference between a tax credit and a tax deduction?

A tax credit applies against the taxpayers’ liability. A tax deduction applies against a taxpayer’s income, lowering the adjusted gross income and possibly moving the taxpayer to a lower tax bracket.

What is the amount of the new tax credit?

For the qualified home improvements, homeowners may be able to claim tax credits equal to 30% of the installed costs, up to a total of $1,500.

What is the time frame for the new tax credits?

The new tax credits are retroactive to January 1, 2009, and expire on December 31, 2010. The $1,500 limit is for all improvements made during the two year term, not $1,500 each year.

What happens if the 30% of the installed costs is less than $1,500?

The homeowner can “bank” the remaining available tax credit for other qualified improvements. Any single installation that costs more than $5000 will instantly reach the $1,500 limit.

Does the tax credit apply to the cost of the equipment or equipment plus labor?

Yes, the credit applies to the installed costs of the qualified equipment, which includes labor.

What if I install a furnace that meets the 95% AFUE standard, but with a central air conditioner below the standard? Can I still claim the full $1,500?

Homeowners can claim 30% of the final installation costs up to $1,500 associated specifically with the 95% AFUE furnace. Should the installation costs associated with the furnace not reach $5,000, 30% of the installation cost can still be claimed and the difference between that amount and the $1,500 cap can be applied to any other qualifying improvements.

Can I use the entire $1,500 tax credit on a single qualifying home improvement?

Yes.

What if I previously claimed tax credits in 2006 or 2007?

Homeowners that previously claimed tax credits in 2006 or 2007 are eligible to claim the full $1,500 limit.

Can I claim the credit for improvements to a second home?

No. The tax credit is only available for improvement to the taxpayer’s primary residence.

Can modular or mobile homeowners qualify?

Yes. As long as the improvements meet the qualifying criteria and the homeowner’s primary residence they may claim the tax credit.

How do I know which specific equipment or improvements qualify for the tax credits?

Below are the requirements as they stand now. Give me a call (678) 935 – 5065 and I will be happy to go over your options with you and which of the Carrier or Amana Systems qualify.

CALL EDENS Heating and Cooling TODAY!

(678) 935-5065