News
"American Recovery and Reinvestment Act of 2009"
Signed into law February 17, 2009
On Tuesday, February 17, 2009, President Obama signed into law H.R. 1, the American Recovery and Reinvestment Act of 2009 (version 8), which is composed of two primary parts. Division A is a series of appropriation provisions while Division B is primarily tax and other provisions and includes specific incentives for residential high-efficiency HVAC equipment.
Subtitle B, Energy Incentives, Part III
- Section 1121 Extension and Modification of Credit for Non-Business Energy Property (for residential replacements only)
- Increases existing residential efficiency credit from $500 to $1,500 for all of 2009 (retroactive) and 2010. Up to 30% of qualified energy efficiency upgrades to a cap of $1,500 to a primary residence is eligible for a credit.
- Eliminates lifetime limit, meaning that any of the $500 credits claimed in 2006 or 2007 do not count against the $1,500 credit cap in 2009 and 2010.
- Eliminates product-specific credit caps.
| Qualifying HVAC and plumbing equipment is listed below and on the following pages, courtesy of the Air Conditioning Contractors of America: | |||
| Qualifying Equipment for Tax Credits Credits Limited to 30% of Installed Costs (up to $1,500) in the tax years 2009 and 2010. |
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| Equipment | Minimum Energy Efficiency | Standard to Qualify | |
| Electric Air Source Heat Pumps | Split Heat Pumps 15 SEER 12.5 EER 8.5 HSPF |
Packaged Heat Pumps 14 SEER 12 EER 8 HSPF |
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| Central Air Conditioners | Split System 16 SEER 13 EER |
Packaged System 14 SEER 12 EER |
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| Geothermal Heat Pump 30% of total installation eligble, no dollar cap*) *solar electric, solar hot water, and wind also eligible |
Closed Loop 14.1 EER 3.3 COP |
Open Loop 16.2 EER 3.6 COP |
Direct Expansion 15 EER 3.5 COP |
| Natural Gas Furnace Natural Gas Hot Water Boiler |
95% AFUE 90% AFUE |
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| Propane Furnace Propane Hot Water Boiler |
95% AFUE 90% AFUE |
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| Oil Furnace Oil Hot Water Boiler |
90% AFUE 90% AFUE |
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| Gas, Oil or Propane Water Heaters | .82 Energy Factor 90% Thermal Efficiency |
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| Electric Heat Pump Hot Water Heater | 2.0 Energy Factor | ||
| Wood Stoves | 75% Thermal Efficiency as measured using a lower heating value. |
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| Advanced Main Air Circulating Fan (ECMs) | No more than 2% of furnace total energy use | ||
