On February 17, 2009, President Obama signed into law "H.R.1, the American Recovery and Reinvestment Act of 2009." This act has significant impact on the residential HVAC Tax Credits that the industry has been aiming at in 2009.

• New Dates. The new credits are available for qualifying products that are "placed in service" between January 1, 2009 and December 31, 2010.
• New Tax Credit Efficiency Requirements. The new law has changed the HVAC tax credit as far as efficiency requirements for Package Heat Pumps, Split System Air Conditioners, and Split System Heat Pumps.
• New Tax Credit Dollar Values. A substantial change of the tax credit is now labeled at 30% of the installed cost of qualifying equipment up th $1,500.00 maximum over both years 2009 and 2010. This is greater than the old fixed dollar values of $300, $150, & $50.

What This Means To You:

You don't receive an income tax credit when you buy the product. This is not an instant rebate. The way this works is the consumer can claim the credit on your federal income tax return. The credit increases the tax refund you would receive or decrease the amount you would have to pay. Now is the time to upgrade your system from an R-22 system to a more energy efficient 410-A system, while taking advantage of the $1,500.00 tax credit to help you defer the cost of your new system! Visit the Energy Star website for full details on the energy savings credits available to you.