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American Recovery &
Reinvestment Act of 2009
Tax Incentives
| Equipment Type | Minimum Efficiency Standard to Qualify | ||
| Split HP | Package HP | ||
| Electric Air Source Heat Pumps | 15 SEER | 14 SEER | |
| 12.5 EER | 12 EER | ||
| 8.5 HSPF | 8 HSPF | ||
| Split Systems | Package Systems | ||
| Central Air Conditioners | 16 SEER | 14 SEER | |
| 13 EER | 12 EER | ||
| Closed Loop | Open Loop | Direct Expansion | |
| Geothermal Heat Pump | 14.1 EER | 16.2 EER | 15 EER |
| (30% Eligible for Credit) | 3.3 COP | 3.6 COP | 3.5 COP |
Expanded Geothermal Tax Credits Homeowners who install geothermal heat pump systems may be able to claim up to 30% of the installed costs in tax credits with no cap in the year the system is placed into service. The geothermal tax credit has a longer term from January 1, 2009 and expires December 31, 2016. The reason for the longer term and larger rebates is the extremely high efficiencies and life expectancies in excess of 25 years. |
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| Natural Gas Furnace | 95% AFUE | ||
Longer Term
The new tax credits are retroactive to January 1, 2009, and expire on December 31, 2010. The $ 1,500 limit is for all improvements made during the two year term, not $ 1,500 each year.
Per-Appliance Caps Removed
Homeowners may use the entire $ 1,500 tax credit limit on a single qualifying improvement. The previous per-appliance caps that limited the homeowner to just $ 150 for a high efficiency furnace or $ 300 for a high efficiency central air conditioner or heat pump have been removed.
Lifetime Limit Removed
Homeowners that previously claimed tax credits in 2006 or 2007 are eligible for the full $ 1,500 limit.
Expanded Geothermal Tax Credits
Homeowners who install geothermal heat pump systems may be able to claim up to 30% of the installed costs in tax credits in the year the system is placed into service. The $2000 tax credit limit has been removed. The geothermal tax credit has a longer term, from January 1, 2009 and expires December 31, 2016. HVAC Contractors should be aware that the $1500 limit applies to many types of energy efficient home improvements, including windows and doors, roofing shingles, and insulation.
