Residential HVAC Tax Credits in 2009/2010 Stimulus

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Qualifying energy efficient residential HVAC equipment

Larger Tax Credit
For qualified improvements (see spreadsheet), homeowners may be able to claim tax credits equal to 30% of the installed cost (up to $1,500).

Longer Term
The new tax credits are retroactive to January 1, 2009, and expire on December 31, 2010. The $1,500 limit is for all improvements made during the two year term, not $1,500 each year.

Pre-Appliance Caps Removed
Homeowners may use the entire $1,500 tax credit on a single qualifying improvement. The previous per-appliance caps that limit the homeowner to just $150 for a high efficiency furnace or $300 for a high efficiency central air conditioner or heat pump have been removed.

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

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, from January 1, 2009 and expires December 31, 2016.

Frequently asked questions about the new tax credits