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  1. #1
    Join Date
    Feb 2009
    Posts
    131

    Ideal setup for TAX break?

    I have been reading about the new 30% up to $1500.00 tax break the government is giving to homeowners for new high efficiency sytems.

    I was just curious what evap coil, condensor, and furnace combinations you would offer your customer to get this rebate. Im not asking for any particular reason, just figured it would be a cool thread to get some more discussion going about these new rebates.

  2. #2
    Join Date
    Feb 2009
    Location
    Chesapeake, VA
    Posts
    8
    GeoThermal and Solar qualify for a full 30% tax credit from the Federal Gov. , other systems have a $1500 cap
    State tax incentives vary state to state
    You can get all this info at :
    http://www.dsireusa.org/library/incl...ID=3&EE=1&RE=1

  3. #3
    Join Date
    Feb 2009
    Posts
    131
    If i read it correctly, it has to be atleast a 16 SEER system for the 1500 dollar rebate.

  4. #4
    Join Date
    Feb 2009
    Location
    Chesapeake, VA
    Posts
    8
    Thats how I read it also , >=16seer for A/C split system

    http://www.energystar.gov/index.cfm?...tax_credits#c3

  5. #5
    Join Date
    Feb 2009
    Posts
    131
    so is this a full 1500 dollar reimbursement to the homeowner after the show proof of purchase?

  6. #6
    Join Date
    May 2000
    Location
    Indianapolis, IN, USA
    Posts
    33,918
    The way I understand it, it is a tax credit applied toward your 2009 tax liability. Let's say after all is said and done, your tax owed is $1600. This $1500 applies to it and you only owe $100.

    OR lets say your tax liability is $2500, you had withheld $3000 so you will be getting a $500 refund. This $1500 comes off your tax liability changing it from $2500 to $1000. So with your $3000 withheld, you will be getting a $2000 refund.

    Those making less money and say only had $1000 liability would only get that reduced $1000 to $0. You can't have a negative liability.

  7. #7
    Join Date
    Feb 2009
    Posts
    131
    Oh ok. great explanation. that pretty much clears it all up for me. I appreciate the input.

    Other then that, I guess its just a matter of what brand you prefer to sell the homeowner or what brand they prefer to buy.

  8. #8
    Join Date
    Feb 2009
    Location
    Chesapeake, VA
    Posts
    8
    Reimbursment ?, if thats how you read it, ok.

    I read it as, my gross income will be reduced by $1500 when preparing my federal tax form.

  9. #9
    Join Date
    Feb 2009
    Location
    Chesapeake, VA
    Posts
    8
    I think BaldLoonies definition makes more sense than the one I gave

    Thanks Baldloonie

  10. #10
    Join Date
    Mar 2009
    Posts
    32
    GUys make sure you know that depending on if you have a heat pump or straight cool you have to meet the min requirments of SERR, HSPF and EER. Don't assum that any 16 or 15 (Heat Pump) seer systems qualify. I know the heat pump side the new Trane XL20i heat pumps are not elligable on a 4 or 5 ton. I had to bring in an Amana rep so i can start selling there 4 and 5 ton systems to be sure all of my customers are gonna get the best bang for their buck.

  11. #11
    Join Date
    Feb 2009
    Posts
    131
    Quote Originally Posted by SplitCool DC17 View Post
    Reimbursment ?, if thats how you read it, ok.

    I read it as, my gross income will be reduced by $1500 when preparing my federal tax form.
    so you are saying instead of being taxed on say $61,500, you would be taxed on $60,000?

    Im just trying to see what the actual cost to reward ratio is.

    basically, if they spend an extra 2k (hypothetically) on 16 seer, how much of that 2k would they get back from the government. thats what im trying to figure out. but if it is how you worded it, i guess it all depends on their income level.

  12. #12
    Join Date
    Feb 2009
    Posts
    131
    Quote Originally Posted by TampaAC View Post
    GUys make sure you know that depending on if you have a heat pump or straight cool you have to meet the min requirments of SERR, HSPF and EER. Don't assum that any 16 or 15 (Heat Pump) seer systems qualify. I know the heat pump side the new Trane XL20i heat pumps are not elligable on a 4 or 5 ton. I had to bring in an Amana rep so i can start selling there 4 and 5 ton systems to be sure all of my customers are gonna get the best bang for their buck.
    We do very minimal heat pumps where i currently work and dont plan to do many once i get my own stuff going. a 16 SEER system (non heat pump) should qualify, correct?

  13. #13
    Join Date
    Mar 2009
    Posts
    32
    Quote Originally Posted by MYLEVL View Post
    We do very minimal heat pumps where i currently work and dont plan to do many once i get my own stuff going. a 16 SEER system (non heat pump) should qualify, correct?
    If you do your tax's and are going to get $500 back you will now get $2,000 back ($500 +$1,500 =$2000) This is a true tax CREDIT not a deduction. They are giving you credit for paying the government $1,500 in tax's.

    as far as what qualifies for a straight cool A/C
    Split Systems:
    EER >=13
    SEER >= 16

    Package systems:
    EER >= 12
    SEER >= 14

    Heat Pump
    Split Systems:
    HSPF >= 8.5
    EER >= 12.5
    SEER >= 15

    Package systems:
    HSPF >= 8
    EER >= 12
    SEER >= 14

    ***Note*** You have to meet all of the requirements (ie. SEER, EER, HSPF) Ask the manufactures of the products you carry to give you a list of all equipment that qualifies.

    http://www.energystar.gov/index.cfm?...pr_tax_credits

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