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The US government offers tax credits for purchasing energy-efficient air conditioners, as part of the American Recovery and Reinvestment Act of 2009. The credit has different tiers and requires documentation of the purchase and specific tax forms to be submitted. The air conditioners must meet specific environmental standards to qualify.
An air conditioning tax credit is an incentive to upgrade cooling devices created by the United States government. These federal tax credits were included in the American Recovery and Reinvestment Act of 2009 and reimburse buyers for a percentage of the costs of new air conditioners. This credit only applies to the purchase of specific energy efficient air conditioner models. Taxpayers must retain documentation of the purchase and submit specific tax forms to receive the credit.
The plan to provide citizens with an air conditioning tax credit stems from the American Recovery and Reinvestment Act of 2009. The law aims to help environmental conditions by encouraging citizens to get rid of inefficient air conditioners for older models. newer and more efficient This credit has several levels, providing different returns on investments depending on the purchase price of each air conditioner; Tier 1 returns 10% of purchase price up to $500 USD, excluding new construction and rentals as of end 2011. Tier 2 returns 30% with no upper limit on all homes as of end 2016 The third tier reimburses 30% of the cost, up to $500 USD per .5 kW of power capacity by the end of 2016, excluding rentals and second homes.
The main stipulation guiding the air conditioning tax credit is that new models must meet specific environmental standards. Only home refrigeration units that meet particular efficiency ratings qualify for purchase. Individual units must have an energy efficiency rating greater than 13 and a seasonal energy efficiency rating greater than 16. Central air units must have a rating greater than 12 and 14. These numbers are provided in the specifications for new units of air conditioning.
Documentation and receipts for a new air conditioner are important in redeeming an air conditioning tax credit. The manufacturer’s certification statement included with the unit is also important. These documents do not need to be submitted with the tax return, but the information should appear on individual tax forms.
Tax filing is the key element to receiving an Air Conditioning Tax Credit refund. Taxpayers must complete line 52 of the 1040 tax form and also complete Form 5695. Generally, the tax credit is given to buyers who qualify for a tax refund or the money is applied toward an Internal Revenue Service debt for taxpayers with a liability tax.
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