AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009

UPGRADE YOUR HOME'S HEATING AND COOLING SYSTEM TODAY!

UNCLE SAM WILL PICK UP PART OF THE TAB!

Thanks to Uncle Sam, there has never been a better time to replace your current Heating and Cooling system! The Federal Government wants to encourage US citizens to retrofit their homes with energy efficient equipment through its latest tax credit program. The Plan; To encourage energy savings at home, Uncle Sam foots part of the bill to upgrade your home HVAC system, and YOU get to start saving on your monthly utility bills TODAY! It's a win, win proposition!

 

 

 

 

 

How does it work?

The HVAC Federal Tax Credit is available for high efficient central air conditioners, air source heat pumps, furnaces and boilers. To qualify, the system must be installed from January 1, 2009 through December 31, 2010. If the equipment you select for your home meets the minimum efficiencies stipulated as a part of the tax credit program, you may qualify for a Federal Tax Credit for 30% of the total cost up to $1,500.00 for installing a new high efficient home comfort system in your existing home.

If you are interested in the latest cutting edge GREEN technology, a Geothermal Heat Pump system may be for you. It still qualifies for the 30% tax credit but is not subject to the cap of $1,500.00. Geothermal Heat Pumps must be placed in service by 2016.

Like most consumers, you will want to know if your new equipment that you are purchasing will qualify for the tax credit. Vogel Heating & Cooling has all the latest information to answer your questions. Our Home Comfort Advisors will be able to produce a Manufacturer Certification Statement at the time of your appointment to show you the system qualification. If you’re in the process of getting multiple estimates and a sales consultant cannot show you a Manufacturer's Certification Statement, most likely that system DOES NOT qualify!

Here are some frequently asked questions about the tax credit….

What type of equipment qualifies?

Not all ENERGY STAR products will qualify. The best way to find out what type of equipment qualifies is to plan an in home consultation and ask our Home Comfort Advisor for details. Manufacturers have been adapting their product lines to the new tax programs, and Vogel Heating & Cooling has all the latest information on hand.

How do I apply for the tax credit?

To apply for the tax credit use IRS Tax Form 5695 (2009) and submit it with your 2009 taxes by April 15, 2010. This form will be available late 2009 or early 2010. Vogel Heating and Cooling will furnish you with a Manufacturers Certification Statement and a detailed contract of work performed at the time we install you new system. You will not need to submit your Manufacturers Certification Statement to the IRS, but you will want to keep it and your Contract detailing your new system on hand as you would any other tax related documentation. We also recommend you consult with your tax preparer when you file your taxes to make sure you have all of your documentation in proper order.

What is the difference between a tax deduction and a tax credit?

A tax deduction reduces the amount of income that you are subject to tax. For instance, if your taxable income is $40,000.00 and you have a $1,000.00 tax deduction, your taxable income would be reduced to $39,000.00

A tax credit reduces the amount of taxes you have to pay at the end of the year. If you owe $900.00 at the end of the year, and you get a $500.00 tax credit, then you will only owe $400.00. If you are getting a refund you can most likely collect the entire tax credit, as long as the total amount of income taxes that you have paid throughout the year is more than the total amount of tax credits that you are claiming.

If you do not pay any taxes, then you WILL NOT get the tax credit for energy efficiency.

Are the installation costs covered by the tax credit?

Yes, the product plus the cost of installation is included in the calculation for the HVAC tax credit.

What happens if the 30% of the installed cost is less than $1,500.00?

The homeowner can take the remaining available tax credit for other qualified improvements. If the total cost is $5,000.00 or more you will automatically reach the $1,500.00 limit.

Can I claim $1,500.00 in tax credits for improvements made in 2009 and again in 2010?

No. You are only eligible to claim the total of $1,500.00 in tax credits for the combined two year period.

 

Let Vogel Heating & Cooling show YOU why we are your local HVAC EXPERTS and FEDERAL HVAC TAX CREDIT specialists!

We would like the opportunity to meet with you personally and give you all the latest information on how you can save money by purchasing a new Heating and Cooling system for your home. To learn more about replacing your system and how you can receive a Federal Tax Credit, please call us today and set up an appointment with our Home Comfort Advisor at (314) 351-2533 or click here to set up an appointment online.