Home Improvement Tax Credits                                      

The American Recovery and Reinvestment Act of 2009
What this bill means to you

On February 17, 2009, President Obama signed a stimulus bill that combines spending and tax incentives designed to get the American economy moving again by investing in our nation's energy infrastructure.  

Homeowner's now may be able to claim tax credits equal to 30% of the installed costs (up to $1,500) on qualifying energy efficiency improvements.  This tax credit is avaliable on qualifying purchases from January 1, 2009 to December 31, 2010.  The $1,500 limit is for all improvements made during the two year term.

Scottco Products with Tax Credits                                           

Split System Air Conditioning Systems 
   SEER: 16 or higher
   EER: 13 or higher

Package Air Conditioning Systems 
  SEER: 14 or higher
  EER: 12 or higher

Split System Heat Pump Systems
   SEER: 15 or higher
   EER: 12.5 or higher
   HSPF: 8.5 or higher

Gas and Oil Furnaces 
   AFUE: 95% or higher

Water Heaters (Gas, Oil, Propane) 
   Energy Factor >= .90 or
   Thermal Efficiency or at least 90%

Tax Credit FAQ

Can a homeowner claim $1,500 in tax credits for improvements made in 2009 and again for improvements made in 2010?
No.  Taxpayers may only be eligible for a total of $1,500 in tax credits for improvements made in the combined two year period of 2009 and 2010.

Can a homeowner use the entire $1,500 limit as a credit toward the installation of one appliance?
Yes.  A homeowner may use the entire $1,500 in tax credits for installing a single appliance such as a qualified furance, air conditioner, heat pump or hot water heater.

Does the tax credit apply to the cost of the equipment or equipment plus labor?
The tax credit applies to the installed costs of the qualified equipment, which includes labor.

Can a homeowner claim the credit for improvements to a second home?
No. The tax credit is only avaliable for improvement to the taxpayer's primary residence.

How will a taxpayer claim the credit?
In the past, the IRS has directed taxpayers to use Form 5695, Residential Energy Efficient Property Credit.  Taxpayers are not required to file anything more than the form, but are instructed to keep records of their installation. 

Helpful Links

EnergyStar.gov
Alliance to Save Energy

Contact us at 806-355-4663 for more information.