An Overview of the Economic Stimulus Bill

Background

On February 17, President Obama signed the American Recovery and Reinvestment Act of 2009 (also known as the economic stimulus bill) into law. This legislation combines spending and tax incentives designed to get the American economy moving again by investing in our nation's roads and energy infrastructure, and by providing incentives for increasing the efficiency and performance of America's homes and commercial buildings. Access www.recovery.gov for the full American Recovery and Reinvestment Act signed by President Obama.

How Robertson Electric Can Help You

We already offer systems that can save you as much as 60 percent on your energy usage. In addition, we have many products that are eligible for the new energy tax credit, adding even more savings to the equation for homeowners considering a new heating and cooling system.

Read on to learn how the tax credit program works, which products qualify, and to find the answers to common questions you may have about these new benefits.

How the Tax Credit Program Works

For qualified energy-related home improvements, you may be able to claim tax credits equal to 30 percent of their product and installation costs, up to $1500. These credits are valid for purchases and installations made from Jan. 1, 2009 to December 31, 2010. The $1500 limit is for all improvements made during the two-year term, rather than $1500 each year.

Products that Quality for this Credit

Some, but not all, products may qualify for the tax credit. Below is a summary of the system components and efficiency requirements as they apply to residential HVAC equipment. For more information about specific products and systems, please give us a call.

Quick Tips:

• Products must be "placed in service" from Jan. 1, 2009 through December 31, 2010.
• Products must be for the taxpayer's primary residence
• $1500 is the maximum total amount that can be claimed for all products placed in service in 2009 and 2010 for most home improvements
• Products must have a Manufacturer Certification Statement to qualify
• For record-keeping, homeowners should save their receipts and the Manufacturer Certification Statement
• Improvements made in 2009 will be claimed on homeowners' 2009 taxes (filed by April 15, 2010); use IRS 2009 Form 5695, which will be available in late 2009 or early 2010
• Homewoners building a new home can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC or nonsolar water heaters.