AHRI Environmental Advocacy - Federal Tax Credits (2009)

Sep 19, 2026

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AHRI Environmental Advocacy material summarizes federal legislative changes affecting energy-efficiency tax credits after the Feb. 17, 2009 signing of the American Recovery and Reinvestment Act. It details revised eligibility rules for homeowners, including modified efficiency tier requirements, the shift to percentage-based credits, increased maximum credits for 2009–2010, and exemptions for certain technologies. It also explains qualification examples, product-type efficiency thresholds, claim timing for 2009 taxes, and guidance for builders’ tax credits tied to energy-savings targets and building-envelope contributions.

LanguageEnglish

CategoryGeneral

FormatPDF

Pages3

Reading Time1 min

AccessFree to download

Environmental Advocacy

Federal Legislative Issues

Tax Credits for Homeowners

Tax Credits for Home Builders

Qualifying Equipment Guidance

AHRI :: Air-Conditioning, Heating and Refrigeration Institute Page 1 of 3 Home FaxBack 1296 SEARCH Go CONTACT US | Members | | --- | | Specifiers / Contractors | | Homeowners | | About AHRI | | Certification Programs | | Standards Program | | Global Initiatives | | Environmental Advocacy | | Education and Workforce | | Industry Statistics | | Research | | Events | | Newsroom | ENVIRONMENTAL ADVOCACY Federal Legislative Issues Federal Tax Credits On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. Tax Credits for Homeowners z The efficiency levels have been modified to reflect the highest tier of the CEE High-efficiency Specification for Residential HVAC Systems for equipment "placed in service" between Feb. 17, 2009 to Dec. 31, 2010. Please note: Equipment listed in the chart below (except water heaters, which only needs to achieve one of the efficiency specifications) must meet all performance specifications for its category. For example, a tax-credit eligible split central air conditioner must have stated performance ratings of 13 EER and 16 SEER. z The tax credit has been raised from 10% to 30% for certain products. z The tax credits that were for a specific dollar amount (i.e. $300 for a CAC), have been converted to 30% of the cost. z The maximum credit has been raised from $500 to $1500 for the two years (2009–2010) . However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum. z Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010)—use IRS Tax Form 5695 (2009 version)—it will be available late 2009 or early 2010. Product Type Residential Central A/C Residential Air-Source Heat Pumps Residential Geothermal Tax Credit Specification Split: EER>=13 and SEER>=16 Packaged: EER>=12 and SEER>=14 Split: HSPF >= 8.5 and EER >= 12.5 and SEER >= 15 Packaged: HSPF >=8 and EER >= 12 and SEER >= 14 Closed Loop: EER >= 14.1 COP >= 3.3 Tax Credit The tax credit is for 30% of the total cost.1 The tax credit is for 30% of the total cost.1 This one time tax credit is for 30% of the Effective Date Feb. 17, 2009 – Dec. 31, 2010 Feb. 17, 2009 – Dec. 31, 2010 The credits are available for systems Find Qualifying Equipment Go to Air Conditionersand Air Conditioner Coilsand enter the minimum EERand SEER. Go to Heat Pumps and Heat Pump Coilsand enter the minimum HSPF, EER and SEER. Go to either the Water-to-Air and Brine-to-Air Heat Pumps or Direct Geoexchange Heat [http://www.ahrinet.org/Content/FederalTaxCredits_896.aspx](http://www.ahrinet.org/Content/FederalTaxCredits_896.aspx) 6/2/2009 AHRI :: Air-Conditioning, Heating and Refrigeration Institute Page 2 of 3 Heat Pump Residential Gas, Oil, Propane Furnace or Hot Water Boiler Advanced Main Air Circulating Fan Residential Gas, Oil, Propane Water Heater Residential Electric Heat Pump Water Heater Open Loop: EER>=16.2 COP>=3.6 Direct Expansion: EER>=15 COP>=3.5 Furnaces: Gas >= 95% AFUE Oil >= 90% AFUE Propane >= 95% AFUE Boilers: AFUE>=90 No more than 2% of furnace total energy use. Read this FAQ from Energy Star if the fan qualifies, but the furnace does not. Energy Factor >= 0.82 or Thermal Efficiency>=0.90 Energy Factor >= 2.0 total investment2 The tax credit is for 30% of the total cost.1 The tax credit is for 30% of the total cost.1 The tax credit is for 30% of the total cost.1 The tax credit is for 30% of the total cost.1 "placed in service"from Jan. 1, 2006 through Dec. 31, 2016. Feb. 17, 2009 – Dec. 31, 2010 Feb. 17, 2009 – Dec. 31, 2010 Feb. 17, 2009 – Dec. 31, 2010 Feb. 17, 2009 – Dec. 31, 2010 Pumps directories. Limit your search by entering the qualifying efficiency r

FAQs

What law change affected energy-efficiency tax credits in 2009?

On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009, which made significant changes to the energy efficiency tax credits.

How did the homeowner tax credit amounts change for 2009–2010?

The document states the tax credit increased from 10% to 30% for certain products and converted fixed-dollar amounts (e.g., $300) into 30% of the cost.

What qualifications are required for home builders to receive federal tax credits?

Home builders may receive a $2,000 credit for a new energy-efficient home achieving 50% energy savings for heating and cooling over the 2004 IECC with supplements, with at least 1/5 of savings from building envelope improvements.

Sep 19, 2026

Upload by Jake