Question by : Do heat pumps qualify for tax credit on our return? We’re told yes from the heat company, no from our tax guy?
We had our gas heat replaced with a heat pump. The electric company said we would get a credit for making our home more energy efficent but the tax accountant said there is no tax credit for the heat pump. Is this true?
Answer by Gorkbark Porkduke Gefunken Fubar
Certain items qualify for the tax credit. Go to the IRS web site and do a search for energy tax credit.
Heat pumps offer an energy-efficient alternative to furnaces and air conditioners in moderate climates. Like your refrigerator, heat pumps use electricity to move heat from a cool space into a warm, making the cool space cooler and the warm space warmer. During the heating season, heat pumps move heat from the cool outdoors into your warm house; during the cooling season, heat pumps move heat from your cool house into the warm outdoors. Because they move heat rather than generate heat, heat pumps can provide up to 4 times the amount of energy they consume.
Tax Credit includes installation costs.
30% of the cost (including installation/labor costs), up to $ 1,500.
Tax credit in effect in 2009 and 2010. Must be installed in your “principal residence” between January 1, 2009 and December 31, 2010.
Partial list of qualifying systems:
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