Split System Heat Pump Tax Credit

You can buy a conventional wall air condoning wall unit for your added room or house and save a little money today and pay more later. If you consider the tax advantages of buying a higher efficiency Split Source Heat Pump you will pay only a little more today and save much more later.

The American Recovery and Reinvestment Act of 2009 extended many consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPACT) and amended in the Emergency Economic Stabilization Act of 2008 (P.L. 110-343).

A tax credit is more valuable than a tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed.

Here is how it works; homeowners can claim 30% of the cost (up to $1,500.00) for the installation of higher efficiency equipment including Air-Source Heat Pumps in tax years 2009 and 2010.

The tax credit applies to the total of the equipment including labor.
There are six basic requirements to qualify for tax credits under the American Recovery and Reinvestment Act of 2009:

• Must be complete and available for use (placed in service) from Jan 1, 2009 through Dec 31, 2010.
• Must be for taxpayer’s principal residence.
• Must have a Manufacturer Certification Statement to qualify.
• For record keeping, save your receipts and the Manufacturers Certification Statement.
• Improvements made in 2009 will be claimed on your 2009 taxes using IRS Form 5695 (2009 version).
• The ratings must have at least a HSPF of 8.5, EER of 12.5, and a SEER of 15.

The installation of a high efficient Split Source Heat Pump system can save you money with Uncle Sams help along with energy savings for many years to come.