ENERGY EFFICIENCY TAX CREDIT On February 17, 2009, President Obama signed the “American Recovery and Reinvestment Act of 2009 (ARRA)” into law. This bill provides a tax credit to help offset the costs of making energy efficiency improvements to your home.
At Quality Breeze, we offer a wide variety of products that not only meet the requirements for the Federal Tax Credit for Residential Energy Property Expenditures, they can provide years of substantial savings on monthly energy bills.
How the Program Works
1. The tax credits apply to a variety of products (including installation costs) such as windows, doors, heating and cooling equipment and more.
2. The amount of the credit is equal to 30% of the installed cost of the qualifying products, up to a total of $300.
3. If a qualifying purchase is not large enough to qualify for the maximum credit of $300, the remaining available tax credit can be claimed for additional qualifying purchases.
The Economic Advantage of Tax Credits The reason many homeowners are so excited about this program is because tax credits, unlike deductions, are subtracted directly from the total amount you owe on your personal income taxes. For example, if you complete your tax return and calculate that you owe the IRS $2,000, a tax credit of $300 will reduce your tax bill to only $500. Of course, be sure to check with your tax adviser on how to best take advantage of the tax credits.
Tax Credits Available in 2009 and 2010 To take advantage of the American Recovery and Reinvestment Act of 2009 tax credits, you must purchase your qualifying high-efficiency comfort system between January 1, 2009 and December 31, 2010. Better yet, your savings won't be limited to a one-time tax credit. You'll continue saving every month with reduced monthly cooling and heating bills. For more information, contact a Carrier dealer today.