The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law on February 16, 2009 by U.S. President Barack Obama, opening the door for heating, air conditioning and indoor air quality customers to receive expanded tax credits. The tax credits apply to the installed costs of qualifying high-efficiency products and home efficiency improvements.
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.
What improvements qualify:
How to get the credit:
Limitations of the credit:
The tax credit is only available on the taxpayer's primary residence and can only be claimed on their personal income taxes.| Equipment | Previous Requirement | Current Requirement | |
| Electric Heat Pump | (No Distinction) | Split Heat Pumps | Package Heat Pumps |
| 15 SEER | 15 SEER | 14 SEER | |
| 13 EER | 12.5 EER | 12 EER | |
| 9 HSPF | 8.5 HSPF | 8 HSPF | |
| Central Air Conditioners | Split System | ||
| 15 SEER | 16 SEER | ||
| 12.5 EER | 13 EER | ||
| Package System | |||
| 14 SEER | 14 SEER | ||
| 12 EER | 12 EER | ||
| Water Heaters | .80 Energy Factor | .82 Energy Factor | |
| 90% Thermal Efficiency | 90% Thermal Efficiency | ||
| Wood Stoves | 75% Thermal Efficiency | "75% Thermal Efficiency, as measured using a lower heating value." | |
| Natural Gas Furnace | 95% AFUE | 95% AFUE | |
| Natural Gas Hot Water Boiler | 95% AFUE | 90% AFUE | |
| Propane Furnace | 95% AFUE | 95% AFUE | |
| Propane Hot Water Boiler | 95% AFUE | 90% AFUE | |
| Oil Furnace | 95% AFUE | 90% AFUE | |
| Oil Hot Water Boiler | 95% AFUE | 90% AFUE |
Sources: 26 USC 25C as amended by EESA http://www.cee1.org/resid/rs-ac/rs-ac-tax-credits.php3 Information contained herein may be inaccurate and is subject to change. Service Experts is not responsible for the accuracy of the information presented.



