$1,500 Heating and Air Tax Credit

In January 2009, a $1,500 tax credit bill was passed that would allow consumers to upgrade to more energy-efficient HVAC equipment that would save on energy bills and also allow them to save on their taxes next year.

For qualified HVAC improvements, homeowners are eligible to claim tax credits equal to 30% of the installed costs or up to $1,500. This $1,500 heating and air tax credit can be used on single qualifying improvements and expires on December 31, 2010. All HVAC improvements that are qualified are eligible for this tax credit only one time during this time frame and not $1,500 each year.

Details on the $1,500 tax credit are as follows:

Not all homeowners qualify for the tax credit. You should consult with a tax professional to see if you are eligible based on your tax situation.
Homeowners may use the full $1,500 in tax credits for the installation of qualified furnaces, air conditioners, heat pumps, hot water heaters or a single appliance.
If 30% of the installed costs is less than $1,500, then the homeowner can "bank" the remaining available tax credit for other qualified improvements.
The tax credit includes the cost of the equipment and labor.
Homeowners wishing to take advantage of the tax credit and who are eligible should use Form 5695 - the Residential Energy Efficient Property Credit.

Holtkamp Heating & Air want to make sure you have the answers you need and are willing to assist. If you have any further questions regarding the $1,500 heating and air tax credit please contact us. Please keep in mind that tax laws are subject to change, and advise you to also speak to a professional tax advisor.