For qualified improvements, homeowners may be able to claim tax credits equal to 30% of the installed costs (up to $1,500).  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, rather than $1,500 each year.

The tax credit applies as a direct reduction of taxes owed.  In the past, the IRS has directed taxpayers to use Form 5695 (the Residential Efficient Property Credit).  It is expected that the IRS will produce new rules related to recently enacted stimulus legislation, giving taxpayers further guidance on claiming tax credits.  To fully understand how the new tax credit may apply to you and what you can do to obtain one, you should consult with a tax professional for advice on tax preparation, as this tax credit is subject to IRS regulations.

Qualifying heating and cooling equipment and other information:

· Split system heat pump efficiency requirements are 15 SEER/12.5 EER/8.5 HSPF units.  (All three efficiency levels must be met to qualify for the tax credit.)

· Gas furnace efficiency requirements are 95% AFUE units.

· The maximum tax credit amount is $1,500.  The legislation specifies that 30% of the cost of qualifying equipment, including installation costs, are subject to a $1,500 maximum per homeowner.

· The tax credit is effective for all qualified systems installed from January 1, 2009 through December 21, 2010.

· The tax credit is valid only for taxpayers that own their home and which is used as their primary residence.

For more information, or if you have any questions regarding heating and cooling improvements, please contact us at 412-833-1911 or e-mail us at djyonishinc@verizon.net.

Home Improvement  Tax Credit