Tax Credit | The Air Conditioning and Heating Company Inc.

Feel Total Comfort With Tax Credits

Enjoy expanded tax credits with cooling and heating installations.

On February 16, 2009, President Barack Obama signed The American Recovery and Reinvestment Act of 2009 (ARRA) into law. This means customers who purchase air conditioning and heating systems may be eligible for expanded tax credits that apply to the installed costs of certain high-efficiency products and home efficiency improvements.

During the ARRA two-year incentive period, you can receive a tax credit equaling 30% of the installed costs of eligible cooling and heating improvements – up to a total amount of $1,500. The term is retroactive from January 1, 2009 through December 31, 2010, and all previous credit “caps” are no longer in effect. So if you claimed the same tax credits in previous years, you may still be able to claim the 30% tax credit – up to $1,500 – included in the ARRA.

Additionally, eligible geothermal products are not limited to the $1,500 tax credit; that is, a total 30% credit may be applied to the complete cost of your home’s geothermal improvement. Plus, geothermal products have an extended credit term that ends December 31, 2016.

Learn if your cooling and heating improvements qualify.

THE Air Conditioning & Heating Company, Inc. offers many of the improvements that qualify for tax credits. The full range of eligible items includes energy-saving cooling and heating systems, indoor air quality equipment, water heaters and boilers. You may apply the total $1,500 tax credit to a single purchase or combination of items.

It’s easy to get the tax credits.

File for the tax credits using IRS Form 5695. We highly encourage you to consult with a qualified CPA and keep all of your records and receipts.

Understand your tax credit limitations.

You may only receive the tax credits on your primary residence, and you may only claim the tax credits when filing your personal income taxes.

Equipment	Previous Requirement	Current Requirement

Electric Heat Pump	(No Distinction)	Split Heat Pumps
	15 SEER	15 SEER
	13 EER	12.5 EER
	9 HSPF	8.5 HSPF

Central Air Conditioners	Split System
	15 SEER	16 SEER
	12.5 EER	13 EER

	Package System
	14 SEER	14 SEER
	12 EER	12 EER

Water Heaters	.80 Energy Factor	.82 Energy Factor
	90% Thermal Efficiency	90% Thermal Efficiency

Wood Stoves	75% Thermal Efficiency	“75% Thermal Efficiency, as measured using a lower heating value.”

Natural Gas Furnace	95% AFUE	95% AFUE

Natural Gas Hot Water Boiler	95% AFUE	90% AFUE

Propane Furnace	95% AFUE	95% AFUE

Propane Hot Water Boiler	95% AFUE	90% AFUE

Oil Furnace	95% AFUE	90% AFUE

Oil Hot Water Boiler	95% AFUE	90% AFUE

Sources: 26 USC 25C as amended by EESA http://www.cee1.org/resid/rs-ac/rs-ac-tax-credits.php3. Information contained herein may be inaccurate and is subject to change.