Tax Rebate

The whole tax credit/rebate thing can be a bit difficult to understand. So here it is in the very basic form (more info can be found on our website). When: January 1, 2009 - December 31, 2010. What: a tax credit/rebate to take money off any money you might owe to the government. Qualified Equipment: Air conditioners with a seer higher than 16, Furnaces with an AFUE of more than 95%. MATCHED systems. (talk to your AC installer/tax professional to make sure your units qualify). How Much: 30% of the costs of equipment and installation up to $1,500. Why: To encourage homeowners to upgrade their old equipment, helping the environment, and keeping jobs (in the AC industry) trekking. Benefits: An efficient unit will keep the home more comfortable, and cost less in energy bills than an older unit. Okay, that's the tax rebate in a nutshell. There are also similar rebates being offered for other energy efficient home upgrades, such as installing efficient windows, roofing and solar lighting. You can find information about all of these at www.energystar.gov. For more information, you can always email us: customercare at sinclairair.com or give us a call 626-331-4541.

State Level Rebates

According to a Department of Energy Press Release dated 7/14/2009, many states will be providing extra money in the form of rebates for homeowners who want to upgrade their appliances to newer, more energy efficient models. Source: http://www.energy.gov/news2009/7634.htm

WASHINGTON, DC - U.S. Department of Energy Secretary Steven Chu today announced the availability of nearly $300 million in funding from the American Recovery and Reinvestment Act for state-run rebate programs for consumer purchases of new ENERGY STAR® qualified home appliances. The new program underscores the Obama Administration’s commitment to make American homes more energy efficient, while helping to support the nation’s economic recovery. “Appliances consume a huge amount of our electricity, so there’s enormous potential to both save energy and save families money every month,” said Secretary Chu. “These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy and create jobs.”

The states will submit their plans in August and their final participation requirements in October. After that, we should see some new programs providing incentives for more energy efficient appliances. THEN, you will have NO excuse. The Federal Government is already proving a huge tax break up to $1,500 for installing efficient appliances and add to that state incentives and the units will practically pay for themselves! Who said staying cool was expensive?

Tax Credit FAQ

Source: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index http://www.ahrinet.org/Content/FederalTaxCredits_896.aspx

While the 2009-2010 Tax Credit ($1,500) is pretty appetizing, it can be confusing wading through all of the qualification steps. So at Sinclair Air, we thought that we would post some answers to commonly asked questions to help alleviate some stress.

What units qualify?

• Qualified furnaces have an AFUE (or air fuel utilization efficiency) of 95%. AFUE is expressed as a percentage because it shows how much of the energy used to heat the unit is actually expressed as heat and what the exhaust is. So with a 95% furnace, 95% of the energy is expressed as heat for your home. Only 5% is exhaust. The qualified units also have fans that use no more than 2% of the total energy. The SEER for air conditioners (Seasonal energy efficiency ratio) is at 16 or above.
• All of the manufacturers re-examined their units in July, so make sure that your unit qualifies before signing your contract.

Do both my air conditioning unit and furnace need to qualify?

• No. Only one unit may qualify. Or Both units. If it is only one though, your contract needs to be split reflecting the costs of each unit. Because the cost of only the qualifying unit will be applied in the tax credit.

Is the cost of installation included?

• For air conditioning and heating, our portion of the tax credit does include installation costs.

How can I collect the tax credit?

• Tax payers need to fill out IRS form 5695 (http://www.irs.gov/pub/irs-pdf/f5695.pdf). For your records, it is also a great idea to keep a copy of your contract, and the manufacturer's certificate for the equipment (to prove that the units do in fact qualify).

How long is the tax credit applicable?

• The tax credit is available until December 31, 2010. If units are placed into service between January 1, 2009 and December 31, 2010, the tax credit is available.

How does a tax credit work?

• The tax credit is applied not to your income, but to the total at the end. So if you come out owing $100 (FOR EXAMPLE, HYPOTHETICALLY) the tax credit would bring that balance to 0.
• The tax credit is still available to anyone who upgraded energy appliances in 2007.
• The tax credit can be banked. So, for example, say in 2009 you upgrade your windows and in 2010 you upgrade your air conditioning. Both of these upgrades would qualify assuming that you had not met the $1,500 cap.
I hope that this has answered some of your questions. If you have more specific questions about qualifying units or other information, please email me at amandaatsinclairairdotcom, or visit our website: www.sinclairair.com.

Gas co. Rebates!

The Southern California Gas Company offers several different rebates for upgrading to energy efficient appliances in conjunction with the federal tax credit. That's like getting paid twice for the same upgrade that is already saving you energy!

Visit their website: http://www.socalgas.com/rebates/residential/ To see what types of appliances are getting money back and how much money a homeowner can get back. The information is all in one place and really easy to get to. They did a great job on the site - it's accessible and nicely laid out. For example, you can save $200 for upgrading your furnace. That's on top of the 30% ($1,500) that you get back in tax credit. Definatley check it out!

Rebates!

What's better than getting money back? Getting money back for things that you need to buy anyways, AND knowing that those things (that you need to buy and will get money back for) will save you MORE money!

Flex Your Power (www.fypower.org) has provided a list (by California zip-code) to find any and all money you may qualify for...including appliances, heating and cooling and other energy upgrades.

Source: http://www.fypower.org/res/tools/rgl.html Last access 5/28/09. When I entered my zip code, I found all kinds of great rebates. Including money for a clothes washer depending on my water district. Wow...all of the rebates one qualifies for in one place? Could it be any easier to decrease your carbon footprint AND save money?

Enter your zip code and see how many points you can rack up! There are the basics, like $50 for getting rid of an inefficient fridge (it's better than nothing) all the way up to $1,500 in tax credits for major applainces (like your heating and air system!). Worth checking out...it took me like 5 minutes.

Bring in the New Year with Some Tax Credits

Energystar provides links and forms to help homeowners recieve benefits from home improvements and installing energy efficient appliances during 2008. This was initially started in 2007, but certain items have been renewed in an effort to help continued efforts to help save energy. Certain states provide additional benefits, but most monetary incentives are provided by the Federal Government in the form of tax credits. Visit http://www.energystar.gov/index.cfm?c=products.pr_tax_credits for information about getting rebates for cars, solar systems, wind energy and even some home improvements.

Central Air Conditioners need to be 14 SEER and Furnaces need to be above 95 AFUE (for information about AFUE and other heating or cooling specific terms visit our website: http://www.sinclairair.com/GlossaryPage/Glossary.html#A ) For heating specific information, we also have a separate page on our site to explain all the terminology and options related to choosing a heating source for your home. ( http://www.sinclairair.com/GlossaryPage/HeatingTerms.html)

April is still a long way off, but many experts suggest that if you get organized now, you won't be "down to the wire" during the coming months. Reduce your stress and find necessary paperwork now. Also, if you are considering upgrades to your home or business, check out the rebates offered for energy efficiency. Save money and the environment.