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Federal Tax Credits

Get All The Credit You Deserve!

On February 17, 2009 President Barack Obama signed The American Recovery and Reinvestment Act of 2009 (ARRA) into law. This act opened the door for air conditioning, heating and indoor air quality customers to receive expanded tax credits. These tax credits apply to the cost of installing qualifying high-efficiency products and home efficiency improvements. Review the latest updates for Federal Tax Credits.

Making your home more energy efficient can result in double savings. When you have the new energy efficient system installed you get a tax break of up to 30 percent of the product cost or up to the $1,500 maximum and you also save on energy costs down the road.

The credit’s term is retroactive to the beginning of 2009; from January 1, 2009 to the expiration date of December 31, 2010. Previous ‘caps’ on the credits have been removed. Those consumers who previously claimed the same tax credits in prior years may also claim the 30% tax credit (up to $1,500) included in the Act.

There is good news for consumers considering qualifying geothermal products as they are not subject to the $1,500 credit limit. For qualifying geothermal products you may take a full 30% tax credit on the entire cost of the geothermal improvement. As an additional incentive geothermal products have a longer credit term, expiring December 31, 2016. At Modern Service and Anderson Service we look forward to offering geothermal products in the near future.

How to get the credit:

In order to file for the credit you will need to complete and submit IRS Form 5695. We strongly recommend that you consult with a qualified CPA and be sure to keep all records and receipts of purchases.

Limitations of the credit:

The Residential Energy Tax Credit is only available on the taxpayer’s primary residence and can only be claimed on their personal income taxes.

 

Sources: 26 USC 25 as amended by EESA http://www.cee1.org/resid/rs-ac/rs-ac-tax-credits.php3 Information contained herein is subject to change without notice and may be inaccurate. Modern Service and Anderson Service are not responsible for the accuracy of the information presented.