FEDERAL TAX CREDIT FOR HVAC EQUIPMENT
In February 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 which includes a tax credit for homeowners who purchase high-efficiency HVAC equipment.
The tax credit is available in 2009 and 2010 (retroactive to Jan. 1, 2009). You can receive a tax credit of 30% of the installed cost up to a maximum of $1500.
Tax Credit Efficiency Requirements
Product
Minimum Requirements
Split-System Air Conditioner
16 SEER & 13 EER
Split-System Electric Heat Pump
15 SEER, 12.5 EER & 8.5 HSPF
Packaged Air Conditioner
14 SEER & 12 EER
Packaged Electric Heat Pump
14 SEER, 12 EER & 8 HSPF
Gas Furnace
95% AFUE
If I am getting a refund on my taxes, can I still get the tax credit?
Most likely you can, as long as the total amount of income taxes that you have paid throughout the year (check your W2 for this amount) is more than the total amount of tax credits that you are claiming. You can't get more money back from the government than you paid in income taxes. If you don't pay any taxes, then you can't get the credit.
What's the difference between a tax credit and a tax deduction?
A tax credit reduces the amount of income tax you have to pay. For example, if you owe $800 in taxes and have a $300 tax credit, then you will only owe $500. Or if you owe nothing, you'll get a $300 refund. A tax deduction reduces the amount of income subject to tax. For example, if your taxable income is $25,000 and you have a $500 tax deduction, your taxable income would be reduced to $24,500.
NOTE: It is recommended that you consult with your tax professional as to the details and requirements of the federal tax credit.
UTILITY REBATES APS AC REBATES
The APS Residential Air Conditioner (AC) Rebate Program offers rebates to APS residential customers who replace their existing heat pump or AC unit with a new high-efficiency system.
To qualify for a rebate the equipment must be installed by an APS Qualified Contractor (Kool Energy is an APS Qualified Contractor) in accordance with APS' Quality Installation standards. Efficiency requirements and rebate amounts are shown below. Rebate applications are available at www.aps.com.
Qualifying Systems
Minimum Efficiency Levels**
APS Quality Installation Required for Rebate
APS Rebate Amount
SEER
EER
13
10.8
Yes
$175
14-16
10.8
Yes
$425
17 and above
10.8
Yes
$525
SRP AC REBATES
To participate in the program, you must:
Be a current SRP residential electric customer with an existing home (new construction is ineligible)
Replace an existing central heat pump or central air conditioner with a new high-efficiency central heat pump or central air conditioner (window units and new construction do not qualify) with minimum efficiency ratings as listed in the table below.
Have the qualified system installed by a licensed contractor between May 1, 2009 and Sept. 30, 2009. Window units do not qualify. Both indoor air handler and condensing units must be replaced on split systems.
Rebate applications will be available online at www.srpnet.com on May 1, 2009
