Federal Tax Credits

News & Info | Heating Oil Facts

Upgrade Your Comfort Equipment and Receive up to $1,500 in Tax Credits - AND MORE!

President Obama's new $787 billion stimulus package - officially known as the American Recovery and Reinvestment Act of 2009 - won't just benefit our economy - it will help keep you warm in the winter and cool in the summer, while putting up to $1,500 in your pocket. And C.K. Smith can help!

What do I need to know about the new tax credits?
You can receive a tax credit to cover 30 percent of the costs, up to a total of $1,500, for the purchase of new comfort equipment rated at 90 percent efficiency or above. Your new heating equipment must be placed in service in 2009 or 2010.

How can C.K. Smith help me?
We offer the most energy-efficient, technologically advanced comfort equipment on the market - and several models qualify for the tax credit. Not only will these outstanding units put up to $1,500 in your pocket - they'll help you save up to 30% or more in energy costs!

What is the federal tax credit?
The tax credit is a direct reduction of your 2009 or 2010 federal income tax payment that is equivalent to 30% of qualifying expenses, with a maximum credit of $1,500. It applies to energy-efficient products for heating, cooling and water-heating products placed in service in 2009 or 2010. Expenses for both equipment and installation qualify, and the credit may apply to multiple pieces of equipment. Separate taxpayers in one household, such as a husband and wife, may each claim a credit of up to $1,500 by filing separately and claiming individual expenses. The limit on an individual credit is $1,500 total for both 2009 and 2010, and there is no restriction relating to individual or household income. For most installations, the credit can be divided between 2009 and 2010 tax returns but cannot be carried over into 2011 or beyond. The U.S. Energy Star program describes the tax credit program and lists qualifying equipment on its Web site. C.K. Smith will advise you which products qualify.

Does the tax credit apply to solar panels and equipment?
Solar panels and other solar equipment qualify for the 30% tax credit without an upper limit and without counting against other credit claims. If the cost of a solar installation exceeds $5,000, you may claim a credit for 30% of the total cost - and still claim a credit of up to $1,500 for additional qualifying installations. Tax credits for solar equipment can also be carried over to future years.

How do I claim the tax credit?
You claim a 2009 credit when filing your income taxes using 2009 IRS Form 5695. You will need to save supporting documentation, including your receipts and a Manufacturer's Certification Statement. The Manufacturer's Certification Statement, which states that the equipment qualifies for the credit, is available from C.K. Smith or the equipment manufacturer. (The IRS encourages manufacturers to provide these Certifications on their web sites to facilitate identification of qualified products.)

Install a High-Efficiency Rinnai and Earn a Tax Credit

Rinnai tankless propane water heaters not only reduce your water heating bills, they can reduce your federal income tax.

The Internal Revenue Service offers a direct tax credit for the installation of high-efficiency appliances, and several Rinnai models qualify for a tax break equivalent to 30% of the purchase and installation cost. You will claim the credit on your federal income tax return.

You will find details about the tax credit on this page. The water heater must be installed in 2009 or 2010 in the owner's principle residence. You must retain your proof of purchase and your Manufacturer's Certification Statement.

You can read more about Rinnai water heaters and the tax credit at the Rinnai site.

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