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Tax Credits for High Efficiency Systems
Bryant provides efficient systems for homeowners across the nation to satisfy indoor comfort needs. They have developed a worldwide reputation for delivering superior heating, cooling, and air purifying technology that truly stands out from the competition. In addition, they offer a wide variety of products that not only meet the requirements for the Federal Tax Credit for Residential Energy Property Expenditures, the energy efficient systems can provide years of substantial savings on monthly energy bills.
How the Program Works
As part of an effort to reduce dependence on foreign sources of energy, the American Recovery and Reinvestment Act of 2009 provides a tax credit to help offset the costs of making energy efficiency improvements to your home. Some key details of the program are as follows:
- The tax credits apply to a variety of products (including installation costs) such as windows, doors, heating and cooling equipment and more.
- The amount of the credit is equal to 30% of the installed cost of the qualifying products, up to a total of $1,500.
- If a qualifying purchase is not large enough to qualify for the maximum credit of $1,500, the remaining available tax credit can be claimed for additional qualifying purchases.
The Economic Advantage of Tax Credits
The reason many homeowners are so excited about this program is because tax credits, unlike deductions, are subtracted directly from the total amount you owe on your personal income taxes. For example, if you complete your tax return and calculate that you owe the IRS $2,000, a tax credit of $1,500 will reduce your tax bill to only $500. Of course, be sure to check with your tax adviser on how to best take advantage of the tax credits.
2011 Changes to Federal Tax Credits Available for Qualifying Residential Systems
Federal tax credits on qualifying, high-efficiency HVAC equipment have been modified and extended through December 31, 2011 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This program differs from the program effective in 2009-2010 in the following ways:
· The maximum amount an eligible homeowner may receive in tax credits for purchasing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC equipment or other eligible improvements, will be reduced from $1,500 to $500.
· The $500 cap is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2010. If you have already claimed credits of $500 or more from improvements made prior to 2011, you will be unable to claim new credits for improvements made during 2011.
· All furnaces and boilers, whether natural gas, propane or oil, must have an AFUE of 95 or above to be eligible for the credit.
· The credit is no longer 30% of qualified residential energy property costs (including labor). Contact us for more information.
