The American Recovery and Reinvestment Act of 2009 (ARRA) expands and extends tax credits to HVAC customers who invest in high efficiency products. Tax credits apply to the installed cost of eligible systems. Customers can claim up to 30% of the installation cost, up to $1500 during the two year incentive period. Geothermal systems can claim 30% of the cost of installation with no cap. The geothermal incentive program does not expire until December 31, 2016. In addition, Kentucky is offering up to $250 in state tax credits on qualifying systems. To qualify, customers need to install high efficiency heating and air conditioning systems that meet the federally mandated minimum efficiencies stated in the ARRA (listed below). Heating, cooling, indoor air quality, boilers, geothermal, solar, and insulation products all can qualify. Moncrief has LEED Accredited Professionals, GeoExchange Designers and Mechanical Engineers on staff to help in the design and implementation of green systems. It is recommended to seek the advice of a CPA to determine if tax credits can be claimed and in what amount. Keep all receipts, records and documentation for the life of the system. Tax credits only apply to primary residences and can only be claimed on personal income taxes. ARRA Efficiency Rating Requirements: Heat Pumps - 15 SEER, Air Conditioners - 16 SEER, Boilers - 90% AFUE, Nat Gas Furnaces - 95% AFUE, Nat Gas Water Heaters - 90% AFUE.
