It's Baaack! The 2009 Federal Residential Energy Tax Credit Program

The very popular Federal Energy Tax Credit program is back and better than ever. For a very limited time this revised and reinstated program has return to help make energy efficiency programs more affordable than ever.

What is the Energy Tax Credit Program?

In an effort to continue investment in environmentally friendly and energy saving technology, the federal government has created a tax credit program to help offset the cost of this advanced energy saving technology.

A tax credit reduces the amount of income tax payable to United States government. Unlike normal itemized deductions, you are not reducing your tax liability allowing you to dollar-for-dollar lower your required tax payment. If you have more tax credit than taxes owed, the difference of tax credit will be refunded. Tax credits are available to individuals claiming a standard deduction.

You mean there used to be an Energy Tax Credit program?

The Energy Tax Credit program is created, managed, and regulated by the United States government. This program was originally approved in 2005 by congress. In accordance with the original legislation it expired in 2007. Upon review congress was shocked at the amount of interest and use of the program. Due to its favorable reception by the public and the desire to spur the economy through green jobs and savings, congress revised and renewed the Energy Tax Credit program through December 31, 2010.

What qualifies for the credit?

Like the old program, residential home energy improvements qualify for the Energy Tax Credit. This includes but is not limited to high efficiency doors, windows, hot water heater, boilers, furnaces, electric heaters, air conditioners, heat pumps, and insulation. There is a complex set of regulation that determines whether a product qualifies as high efficient. Your contractor can recommend and identify qualifying product. Only product in the highest tiers categories qualifies for the Energy Tax Credit Program.

As with all legislation-based programs, qualifying requirements and program guidelines are subject to change by the United State Congress without advanced warning.

How much can I get under the 2009 Energy Tax Credit program?

This is the most exciting part. In its revised state the benefit has tripled with a maximum benefit of $1,500 over the 2009 and 2010 tax years. This allows individuals who took advantage of the previous program to collect up to an additional $1,500 in federal tax credits. Category caps have been removed allowing homeowners to use all $1,500 for insulation or doors or air conditioning or divide it as needed amongst multiple categories. Consistency reins within the new program with credit amounts to be calculated off of installed cost regardless of category. Previously qualifying HVAC credit was calculated off flat rate amounts regardless of cost of level of efficiency within the highest tier. With new calculating methods it is much easier to get to $1,500 with a single qualifying purchase.

How can you help me increase my home’s energy efficiency?

We have many qualifying products from a new home comfort system to home insulation. Not ready to tackle a big project? We have many ways to stretch your investment and save those energy dollars. Call 281-955-1163 today to meet with an Aardvark A/C Energy Specialist.

If you are looking for a professional Houston air conditioning contractor please call us today at 281.955.1163 or complete our online service request form.