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Economic Stimulus Package Contains HVAC Tax Credits
The American Recovery and Revitalization Act of 2009 will have a significant tax incentive to make improvements to the overall energy efficiency of their homes, including their HVAC systems.
The new law will allow homeowners to claim 30% of the costs (up to a $1,500 limit) for the installation of higher efficiency furnaces and boilers, air source heat pumps, central air conditioners, and hot water heaters in tax years 2009 and 2010. The previous tax credits were limited to $300 for central air conditioners and heat pumps and $150 for furnaces and boilers.
The final package as passed by Congress contains changes to the equipment that qualifies for these tax credits, including an increase in the minimum SEER level for central air conditioners and a decrease in the minimum AFUE level for boilers. There were also changes to the heat pump standards.
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