With the passage of President Obama’s Economic Stimulus Bill (ARRA), homeowners may be eligible for a tax credit if they purchase certain types of heating, ventilation and air conditioning (HVAC) systems, water heating equipment, or make other energy-related improvements to their homes between January 1, 2009 and December 31, 2010.The tax credits apply to the installed costs of qualifying high-efficiency products and home efficiency improvements. (See the latest policy updates here.)

Airtech Air Conditioning is enabling homeowners to take control of their own energy management. Airtech Air Conditioning can offer you systems that can help you save up to 60 percent on your energy bill. To add to those savings, Airtech Air Conditioning offers many products that are eligible under the new energy tax credit law. Depending on the type of system or product purchased, it is possible to qualify for a tax credit of up to $1,500 on your 2010 income tax return.

The tax credit is equal to 30% of the installed cost of qualifying heating and cooling improvements, up to a cumulative amount of $1,500 during the two year incentive term. The credit's term is retroactive to the beginning of the year 2009, from January 1, 2009 to the expiration date of December 31, 2010. All previous 'caps' on the credits have been removed. Consumers who previously claimed the same tax credits in prior years may also claim the 30% tax credit (up to $1,500) included in the Act.

Qualifying geothermal products are not subject the $1,500 credit limit. A full 30% credit may be taken on the entire cost of the geothermal improvement. In addition, geothermal products have a longer credit term, expiring December 31, 2016.

Click Here find out more information regarding the government’s summary of Energy Star products that are eligible for HVAC credits.

Qualifying improvements include energy-saving heating & cooling equipment, indoor air quality components, boilers, water heaters, windows, doors, skylights, roofing, insulation and solar devices. Energy-efficiency limits for improvements are detailed below. The full $1,500 tax credit can be applied to a single purchase or a combination of appliances or energy improvements.

How to get the credit:

You will need your receipt and IRS form 5695 to file for your energy tax credit. It is strongly recommended that you consult with a qualified CPA and keep all records and receipts of purchases.