Ideal setup for TAX break?

**MYLEVL** · 03-03-2009, 09:02 PM

hmmmmmmmmmmmm. so if u charge an extra x(hypothetically ofcourse, im not sure off the top of my head what the added cost for 16 seer upgrade is) for 16seer over 14 seer then u can tell the customer he would get that 1500 back at the end of the year. so everyone should want to upgrade.

**motoguy128** · 03-03-2009, 09:03 PM

Originally Posted by BaldLoonie

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.

I'd like to see someone that has a tax liability <$1500.... that can afford a system that qualifies. You would have to spend at least $x to get the full $1500 credit.... Well... I guess there's always a DIY Goodman install.

**MYLEVL** · 03-03-2009, 09:06 PM

Originally Posted by motoguy128

I'd like to see someone that has a tax liability <$1500.... that can afford a system that qualifies. You would have to spend at least $x to get the full $1500 credit.... Well... I guess there's always a DIY Goodman install.

yeah, i dont see a $xk 16 seer install happening unless its a 2 ton maybe?

**motoguy128** · 03-03-2009, 09:08 PM

Originally Posted by MYLEVL

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 xk (hypothetically) on 16 seer, how much of that xk 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.

No, it's a credit, not a deduction.

IF you pay over $x for a qualifying system, you will get $1500 back. So if a basic system in $x and you pay $x for a qualifying system, you get a $1500 credit.

**BaldLoonie** · 03-03-2009, 09:11 PM

Comes right off the tax you owe but can't exceed the tax you owe. And this is tax you owe before your withholding. Not many people would have a tax liability less than $1500 and still have money to spend on high end equipment!

**MYLEVL** · 03-03-2009, 09:12 PM

Originally Posted by motoguy128

No, it's a credit, not a deduction.

.

yeah, i think we all were a little confused at first. i guess the best way to explain it is if you went down to jackson hewitt or any tax company and they said you were getting $2000 back and then you had them add in this tax credit, they would then show that you would get $3500 back.

Is there a form the home owners have to fill out or do they just keep the receipt/invoice proving they had a new 16SEER system installed?

**luv2cruiserccl** · 03-04-2009, 06:51 AM

Thought i would post some information on the state of michigan loan programs that i noticed they have. Just thought i would post for people living in michigan and looking for a Property Improvement Program. Looks to me that there a lot of things that are eligible improvements, including hvac.

http://www.michigan.gov/mshda/0,1607...7374--,00.html

**beenthere** · 03-04-2009, 07:29 AM

Post another install price (hypothetical or not) and the thread will be CLOSED.

**summit** · 03-04-2009, 08:51 AM

There are some really good "bang for your buck" 16 SEER, 13 EER air conditioner with 95% furnace systems out there that will qualify for the 30% tax credit. It makes selling a 16 SEER in Minnesota a LOT easier.

**steve f** · 03-04-2009, 09:30 AM

Originally Posted by MYLEVL

yeah, i think we all were a little confused at first. i guess the best way to explain it is if you went down to jackson hewitt or any tax company and they said you were getting $2000 back and then you had them add in this tax credit, they would then show that you would get $3500 back.

Is there a form the home owners have to fill out or do they just keep the receipt/invoice proving they had a new 16SEER system installed?

Quoting from the website linked below:

"..improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010"

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

**MYLEVL** · 03-04-2009, 09:43 AM

Originally Posted by summit

There are some really good "bang for your buck" 16 SEER, 13 EER air conditioner with 95% furnace systems out there that will qualify for the 30% tax credit. It makes selling a 16 SEER in Minnesota a LOT easier.

what brand and model#s would you put together as a package to sell a customer?

**MYLEVL** · 03-04-2009, 09:44 AM

Originally Posted by steve f

Quoting from the website linked below:

"..improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010"

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

awesome man, thanks for that info

**Not today** · 03-04-2009, 04:53 PM

Both SteveF and TampaAC info is right, if you go the the energy star web site and look under FAQ most of your answers are there. However it looks to me like 80% or 90% less than 95% would still get the credit if they have a "advanced main air circulation fan" aka variable speed. I have been trying to nail this down with my suppliers and manufactures and there is a lot of confusion on this. Does anybody know.....and I mean know for sure.

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