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- 1). First, do some research to make sure that in makes sense to purchase a new furnace or fan.
Buying a new furnace can be quite expensive so if you have a decent furnace, then it is probably does not make financial sense to purchase a new one. If you are on the market for a furnace or fan anyways, then purchasing an ENERGY STAR qualified product makes perfect sense. - 2). After that, talk to an HVAC contractor about qualified products.
There are certain requirements by ENERGY STAR that a contractor can help you with to ensure that you will qualify for the tax credit. In fact, a main air circulating fan must use no more than 2% of the furnace's total energy. - 3). Now, consider purchasing a new ENERGY STAR qualified furnace along with the fan.
You can still qualify for the tax credit on the fan if the furnace does not, but it does make things a little tricky. If both fan and furnace qualify, you can take 30% of the cost of everything (including installation but up to $1,500). If the fan is qualified but not the furnace, you can't include the cost of the entire furnace. - 4). After the purchase and installation of your energy efficient equipment, you will want to fill out the necessary forms with the IRS.
First, fill out form 5695 and file those with your 2009 or 2010 taxes depending on when the products were "Placed In Service" Also, claim the tax credit on your Form 1040 next to line 52. - 5). Finally, consult with a tax professional if you have any questions or special circumstances relating to your purchasing of new HVAC equipment that is energy efficient.
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