TAX CREDIT ENERGY EFFICIENT AIR CONDITIONER UNITS HOUSTON, TX - ENERGY EFFICIENT HEATING SYSTEM FEDERAL TAX SAVINGS

The American Recovery and Reinvestment Act of 2009 (also known as the economic stimulus bill) has been signed into law. This legislation combines spending and tax incentives designed to get the American economy moving again. Part of the tax incentives are for increasing the efficiency and performance of America’s homes and commercial buildings.

One such way to increase the efficiency and performance of your Houston home is to install higher efficiency qualified HVAC systems to your primary residence. When you purchase qualified HVAC systems to improve your home’s energy efficiency, you will qualify for up to $1,500 in tax credits.
This could be a great time to upgrade some of your HVAC equipment or purchase a new heating and cooling system for your home this year.
With the dual benefits of energy and tax credit savings available now, there is more reason for Houston homeowners to act now! It’s a great time for you to take advantage of tax credits by replacing old HVAC systems with tax-credit-qualified HVAC systems. The short-term benefit is the assurance of cost savings by receiving tax credits through the economic stimulus bill; the long term benefits are the savings you will achieve by having a more energy-efficient home.

Trane already offers systems that can save Houston homeowners as much as 60 percent on their energy usage. In addition, Trane offers many products that are eligible for the new energy tax credit, adding even more savings to the equation for homeowners considering a new heating and cooling system.
The largest percentages of air conditioners in homes today are less than the federal minimum of 13 SEER. The majority is between 8 and 10 SEER and are probably on the last 20-30% of their useful life. Houston homeowners can use the stimulus tax credit to help them upgrade the efficiency of their heating and cooling system. As we know, more than 50 percent of the average power bill (electricity) in the summer goes to cooling your home. By making the improvement from an 8 SEER to a 13 SEER unit, homeowners could save between 30-40% on equipment energy costs during peak times – especially if their system is at least 10 years old.

For qualified energy-related home improvements, homeowners may be able to claim tax credits equal to 30 percent of their product and installation costs, up to $1,500. These credits are valid for purchases and installations made from January 1, 2009, to December 31, 2010. The $1,500 limit is for all improvements made during the two-year term, rather than $1,500 each year.
Trane Products That Qualify for This Credit
Some, but not all, Trane products may qualify for the tax credit. Below is a summary of the system components and efficiency requirements as they apply to residential HVAC equipment. For more information about specific products and systems, visit Trane Residential site about 2009 Energy Tax Credits.

Questions and Answers

Q: Can homeowners claim $1,500 in tax credits for improvements made in 2009 and again for improvements made in 2010?
A: No. Homeowners will be eligible only for a total of $1,500 in tax credits for qualifying improvements made in the combined two-year period of 2009 and 2010.

Q: What happens if the 30 percent of the installed costs is less than $1,500?
A: The homeowner can use the remaining available tax credit for other qualified improvements. Any single installation of a qualifying system or HVAC system that costs more than $5,000 will reach the $1,500 limit.

Q: Does the tax credit apply to the cost of the equipment or equipment plus labor?
A: The tax credit applies to the installed costs of the qualified equipment, which includes labor.

Q: Can a homeowner use the $1,500 tax credit toward a single HVAC system installation?
A: Yes, since the per-HVAC-system caps have been removed by this new legislation, a homeowner may use the entire $1,500 in tax credits for installing a
single qualified HVAC system, such as a furnace, air conditioner, heat pump, etc., up to 30 percent of the installed cost of that one HVAC system.

Q: Do I have to have a Trane matched system to qualify?
A: No. Trane systems as well as Trane air conditioners and heat pumps mix-matched with coils from independent coil manufacturers may qualify.

Q: What’s the difference between a tax credit and a tax deduction?
A: A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar for dollar, while a deduction
removes only a percentage of the tax that is owed. Customers can itemize purchases on their federal income tax form, which will lower the total amount
of tax they owe the government. It is strongly advised that you consult your tax professional.

Q: What if the homeowner already claimed $500 in tax credits in 2006 or 2007?
A: The “lifetime caps” that used to be in place have been removed. Previous claims do not count against the current $1500 tax credit limit.

Q: Can a homeowner claim credits for improvements to a second home, such as a vacation home?
A: No, the tax credit program is available only for improvements made to the taxpayer’s primary residence.

To schedule an appointment, please contact us today at 713-266-2665.

Federal Energy Tax Credit for Air Conditioning & Heating Systems

How to save money and get up to 30% tax credit with purchase and installation of energy efficient air conditiners and heating units in Houston, Texas: