Ref: 2009 Federal Tax Credits

President Barack Obama signed into law on Feb. 17, 2009 the Economic Recovery Act. The legislation provides
an extension of the consumer tax credits for certain HVACR equipment. Beginning at the date of enactment (Feb. 17, 2009),
consumers can claim a $1,500 aggregate tax credit for qualified energy efficient home improvements

There are some significant changes to the energy efficiency tax credits. The highlights are:

• The tax credits that were previously effective for 2009 have been extended to 2010 as well.


• The tax credits that were for a specific dollar amount (example $300 for a qualifying central AC) have been
  converted to 30% of the installed cost.


• The maximum credit has been raised from $500 to $1500 for two years (2009-2010).

Here is some additional information on the tax credits.

• Qualifying equipment must be placed into service from January 1, 2009 through December 31, 2010.


• Qualifying equipment must be for taxpayer's principal residence.


• Maximum credit amount is $1500 in 2009 and 2010 for most home improvements. Geothermal heat pumps,
  solar water heaters, solar panels, fuel cells, and windmills are not subject to this cap.

For record keeping, consumers should save their receipts and the Manufacturer Certification Statement.
A Manufacturer's Certification is a signed statement from the manufacturer certifying that the product or component
qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to
facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records,
but do not have to submit a copy with their tax return.

Improvements made in 2009 will be claimed on 2009 taxes (filed by April 15, 2010).
Consumers should use IRS Tax Form 5695 (2009 Version).

For additional information on these tax credits please visit the following website or consult your tax advisor.
Energy Star Link

Homes with ailing comfort equipment or older systems (10 years) will benefit most from an upgrade to a new high
efficiency system. Saving in operating cost, qualifying for a tax credit and enhanced indoor comfort are only a few of
the benefits of today's higher efficiency systems.

Feel free to contact us at the location that services your area should you be in need of additional information.

Sincerely,

B&B Air Conditioning & Heating Service Company Inc.