| Most of you probably have heard about the home buyer tax credit by now, (guessing by the fact that the credit has been going on in some form or the other for nearly three years) and maybe even some of you remember the Cash for Clunkers program that was all the rage a few months ago, but did you know that the federal government is offering a tax credit for up to 30 percent off the purchase price for a new central air conditioner? The tax credit was included in the American Recovery and Reinvestment Act of 2009, and is set to expire at the end of the 2010. As long as the new unit is at least 16 SEER, (a measure of efficiency) taxpayers can file Form 5695, and receive up to a 1,500 credit, or 30 percent of the purchase price, whichever is less. This tax credit is also retroactive to the beginning of 2009, so if you purchased a unit in 2009, you are still eligible to claim it. The only catch is that the credit is nonrefundable, meaning it will only reduce your tax liability to zero. So if you have little or no tax liability for the year, your credit will be reduced. Line 44 of your 1040(line 28 on 1040A) is where you want to look to determine your tax liability for the year. That being said, all homeowners know how expensive it is to replace a new unit, and also how much your air conditioning unit moves the meter on your electric bill. So if your existing unit is starting to get old, or is not as efficient as it used to be, think about making the purchase now at 70 cents on the dollar, instead of paying full price a few years from now. One more thing that needs to be stressed is the monthly savings that these new systems produce. It is not out of the question to save hundreds of dollars each year on your electric bill, because these energy efficient units do not have to work as long to cool your home to the desired temperature. Think of your monthly savings as dividends, paid by a wise investment, financially and environmentally. |
| Great Time For a New Central Air Conditioner |