Stimulus Tax Credit

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How the Program Works

As part of an effort to reduce dependence on foreign sources of energy, the American Recovery and Reinvestment Act of 2009 provides a tax credit to help offset the costs of making energy efficiency improvements to your home. Some key details of the program are as follows:

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 $1,500 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.

2011 Federal Tax Credits Available for Qualifying Residential Systems

Carrier is pleased to report that the federal tax credit on qualifying high-efficiency HVAC equipment was modified and extended through December 31, 2011 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This program differs from the program effective in 2009-2010 in the following ways:

The maximum amount an eligible homeowner may receive in tax credits for "residential energy property" will be reduced from $1,500 to $500. The cap is on the total amount of credits a homeowner may claim for purchases between 2006 and 2011, not just for 2011. If a homeowner has already claimed credits of $500 or more through this allowance, they will be unable to claim new credits for improvements made during 2011.

All furnaces and boilers, whether natural gas, propane or oil, must have an AFUE of 95 or above to be eligible for the credit.

The credit is no longer 30% of qualified residential energy property costs (including labor), but is now equal to an amount not to exceed the following:



Contact us today to see if you qualify!