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► Summary of Important HVAC-related Tax Credits Detail

HVAC Tax Credits in the 2009 Stimulus

Expanded Geothermal Tax Credits 

Homeowners who install geothermal heat pump systems may be able to claim up to 30% of the installed costs in tax credits in the year the system is placed into service. the $2,000 tax credit limit has been removed. The geothermal tax credit has a longer term, form January 1, 2009 and expires December 31, 2016.

Lifetime Limit Removed

Homeowners that previously claimed tax credits in 2006 or 2007 are eligible for the full $1,500 limit.

Link: More Information on Tax Credits


^top   Financial Contact   Detail ID: 1244494218 Posted: 06/08/09

► Can a homeowner use the entire $1500 limit as a credit Detail

toward the installation of one appliance?

Yes.  

A homeowner may use the entire $1500 in tax credits for installing a single appliance, such as a qualified furnace, air conditioner, heat pump or hot water heater. If the home owner does not use all of the $1500 they can "bank" the remaining available tax credit for other qualified improvements.  

What's the difference between a tax credit and a tax deduction? 

As a tax credit applies against the taxpayers' liability. A tax deduction applies against a taxpayer's income. lowering the adjusted gross income and possibly moving the taxpayer to a lower tax bracket. Tax credits have a greater benefit to a taxpayer.


^top   Financial Contact   Detail ID: 1236112384 Posted: 03/03/09