As of December 17, 2010, the federal energy efficiency tax credit has been extended through 2011, but the federal government has significantly changed the credit limis and eligibility requirements.

TAX CREDIT TIME FRAME

January 1, 2011 - December 31, 2011

FREQUENTLY ASKED QUESTIONS About The New Tax Credits

Can the homeowner claim $300 in tax credits for improvements made in 2011 even if they claimed the 2009-2010 tax credit?

No. Taxpayers may only be eligible for a total of $300 in tax credits for improvements made in the Year 2011 as long as no prior tax credits have been claimed.

Does the tax credit apply to the cost of the equipment or equipment plus labor?

The tax credit applies to the installed costs of the qualified equipment, which includes labor.

How will a taxpayer claim the credit and receive their money?

In the past, the IRS has directed taxpayers to use Form 5695, Residential Energy Efficient Property Credit. Taxpayers are not required to file anything more than the form, but are instructed to keep records of their installation.

What’s the difference between a tax credit and a tax deduction?

A tax credit applies against the taxpayers’ liability. A tax deduction applies against a taxpayer’s income, lowering the adjusted gross income and possibly moving the taxpayer to a lower tax bracket. Tax credits have a greater benefit to a taxpayer. With a tax credit, if the taxpayer owes $2000, in taxes, their liability is reduced to $1700. If they owe nothing, they can expect a $300 refund.

Does Every homeowner definitely qualify for the tax credit?

No. Each taxpayer’s situation is different. The taxpayer may have already made other improvements that has qualified, or their tax situation may change by the end of the tax year. By installing qualified equipment, the taxpayer may qualify to claim up to 10% of the installed costs (up to a $300 limit) in tax credits.”

***NOTE>>> Details on qualifying improvements are available at the IRS Website, www.IRS.org. It is expected that homeowners will need to complete form 5695 (Residential Energy Credits) and submit it as part of their 2011 income tax returns to claim the credit.

BELOW IS A LIST OF QUALIFIED EQUIPMENT:

BRYANT HEAT PUMPS

LEGACY

1.5 TON 215BNA018 W/FX4DNF019T00

2 TON 215BNA024 W/FX4DNF025T00

2.5 TON 215BNA030 W/FX4DNF031T00

3 TON 215BNA036 W/FX4DNF037T00

3.5 TON 215BNA042 W/FX4DNF043T00

4 TON 215BNA048 W/FX4DNF049

5 TON 215BNA060 W/FX4DNF061T00

PREFERRED

2 TON 225BNA024 W/FV4CNF002T00

2.5 TON 225BNA030 W/FV4CNF002T00

3 TON 225BNA036 W/FV4CNF005T00

3.5 TON 225BNA042 W/FV4CNF005T00

4 TON 225BNA048 W/FV4CNB005T00

5 TON 225BNA060 W/FV4CNB006T00

EVOLUTION

2 TON 286BNA024 W/FE4ANF002T00

3 TON 286BNA036 W/FE4ANF005T00

4 TON 286BNA048 W/FE4ANF005T00

5 TON 286BNA060 W/FE4ANB006T00

PAYNE

1.5 TON PH15NB018 W/PF4MNB019T00

2 TON PH15NB024 W/PF4MNB031T00

2.5 TON PH15NB030 W/PF4MNB031T00

3 TON PH15NB036 W/PF4MNB037T00

3.5 TON PH15NB042 W/PF4MNB043T00

4 TON PH15NB048 W/PF4MNB061T00

5 TON PH15NB060 W/PF4MNB061T00

GOODMAN

2 TON GPH1424H41

2.5 TON GPH1430H41

3 TON GPH1436H41

3.5 TON GPH1442H41

4 TON GPH1448H41

5 TON GPH1460H41

BRYANT Straight Cools

LEGACY

1.5 TON 116BNA018 W/FX4DNF019T00

2 TON 116BNA024 W/FX4DNF025T00

2.5 TON 116BNA030 W/FX4DNF037T00

3 TON 116BNA036 W/FX4DNF049T00

3.5 TON 116BNA042 W/FX4DNF049T00

4 TON 116BNA042 W/FX4DNF049T00

5 TON 116BNA060 W/FX4DNF061T00

PREFERRED

1.5 TON 126BNA018 W/FV4CNF002T00

2 TON 126BNA024 W/FV4CNF002T00

2.5 TON 126BNA030 W/FV4CNF002T00

3 TON 126BNA036 W/FV4CNF005T00

3.5 TON 126BNA042 W/FV4CNF005T00

4 TON 126BNA048 W/FV4CNB006T00

5 TON 126BNA060 W/FV4CNB006T00

EVOLUTION

2 TON 187BNA024 W/FE4ANF002T00

3 TON 187BNA036 W/FE4ANF005T00

4 TON 187BNA048 W/FE4ANF005T00

5 TON 187BNA060 W/FE4ANB006T00

GOODMAN

2 TON GPC1424H41

2.5 TON GPC1430H41

3 TON GPC1436H41

3.5 TON GPC1442H41

4 TON GPC1448H41

5 TON GPC1460H41