Energy tax credit??

[Chuck Leeper]

Have to replace the heat pump system.
The dlr is telling me I have a $1500 fed tax "credit" coming.
The question for the accounting/cpa's is:
Should I not have a fed tax bill of at least $1500, do I get only the tax due as the credit? Or do I get the difference as a refund?
IE:
Owe $500.00, credit is $1500,,, Refund is $1000.00 OR??
I googled this and find only how to file the credit papers, and see that there is no carry forward on the credit..

 

[georgewe4]

Since you haven't had a response yet I will chime in here. You will get the $1,000.00. I sold many systems last year that qualified for the tax credit and to my knowledge no customer has had any problems claiming that credit. Geothermal systems qualify for 30% of the installed cost. With some of the geo systems going for close to $16,000 30% makes for a big tax credit. Those people have had no problems getting their credit.
Make sure that you get the AHRI certificate with the assigned AHRI number for your system on it. AHRI certifies that what you have purchased actually qualifies for the tax credit. Our main line of equipment is American Standard. When I sell an install that needs to qualify for the tax credit I look up to make sure the combination of the equipment I am quoting qualifies and is assigned a number. If it doesn't then I look until I find a combination that will work.
In your case your heat pump and air handler/coil will have to match. I am a member of a "mixed group" that meets every week. We have just about every trade and business including a lawyer and accountant sitting in the room. The accountant told us that several of her clients was sold HVAC systems that "qualified" for the tax credit, only to find out that the system didn't.
I hope that what you end up purchasing works well for you. It will definately be a variable speed since you are going for the tax credit. That is one thing you will really like.
I will mention your case to the accountant tomorrow in the meeting. I will see if she has ran into a situation like yours.
Good luck to you!

 

[gnfanatic]

Geothermal system costing $16k??? I was quoted $50k then I lost interest. its a shame becuase nothing goes near geothermal when it comes to effeciency

 

[georgewe4]

16 grand..Thats the low end
50 grand?? You must have one heck of a house or one difficult water situation.

 

[Chuck Leeper]

The answer to the TAX CREDIT ?? is that unless you have federal taxes due of more than the $1500 credit, you get only that amt owed deducted, and you lose the rest of the credit.
1. It is good for ONLY 2010 tax yr, and cannot be carried forward.

FWIW, I have the new Rheem seer16, 2 stage unit in place, now.[2 ton]. NICE unit!
Touch screen controls, LED diagnostics, SUPER quiet.
So much more efficient than the 14 yo unit we took out, that I found I have it set on 77*, in order to keep it comfortable. The old unit at 75* setting was ???.
This unit reports humidity.. Running at 42%, now.

 

[ryan319]

if your heat pump meets the efficiency standards (and it sounds like it does) you will be eligible for 30% of the installed price, up to $1500. your tax situation prior to this credit does not effect the credit. this credit does expire after this year and isn't being renewed as far as i know. also check with your state, i know that PA just announced a few hundred dollar credit for HVAC too.

i'm a CPA and also shopping for a new furnace and AC.