|
Thanks to the recent Government "Economic Stimulus" program, you can now earn up to $1500 in tax credits when you replace your heating and air conditioning system.
It's not a tax deduction, its a dollar for dollar Tax Credit! If you have a tax liability of $2,500 at the end of the year, you'll only owe $1,000 if you purchase qualifying equipment this year.
Just ask one of our Comfort Specialists to explain how you can take advantage of this time-sensitive incentive. After all, it's not every day that Uncle Sam wants to put money in your pocket!!!
Frequently Asked Questions about the new Tax Credits
Can the homeowner claim $1500 in tax credits for improvements made in 2009 and again for improvements made in 2010?
No. Taxpayers may only be eligible for a total of $1500 in tax credits for improvements made in the combined two year period of 2009 and 2010.
Can a homeowner use the entire $1500 limit as a credit toward the installation of one appliance?
Yes. A homeowner may use the entire $1500 in tax credits for installing a single appliance, such as a qualified furnace, air conditioner, heat pump, or hot water heater.
What happens if the 30% of the installed costs is less than $1500?
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 $1500 limit.
Does the tax credit apply to the cost of the equipment or equipment plus labor?
The tax credit applies to the installed costs of the qualified equipment, which includes labor.
What is a tax credit?
With a $1500 tax credit, if the taxpayer owes $2000, in taxes, their liability is reduced to $500. If they owe nothing, they can expect a $1500 refund.
How will a taxpayer claim the credit and receive their money?
In the past, the IRS has directed taxpayers to use Form 5695, Residential Energy Efficient Property Credit. Taxpayers are not required to file anything more than the form, but are instructed to keep records of their installation.
For more info, click here
|
