1. 30% tax credit up to $1500 maximum
2. Central Air Conditioning must have an Energy Efficiency Rating of at least 13 EER and a Seasonal Energy Efficiency Rating of 16 SEER
3. Costs include labor
4. Must be installed in your primary residency
5. Does not include new construction
6. Must be installed and ready to use between the dates of January 1, 2009 and December 31, 2010
7. You will need to file a newer version of IRS Form 5695 with the IRS at tax time
8. You will need a receipt for the work done
9. You will need a Manufacturer Certification Statement confirming the efficiency rating

A Central Air Conditioner is known as a Split System which means that outside condenser is separate from the inside blower coil unit or air handler.  These two units will be connected to each other by copper refrigerant lines.  A true upgrade to 16 SEER should involve the replacement of the outside condenser, the cooling coil and the refrigerant lines.

16 SEER represents the air conditioner's efficiency over the entire season, while 13 EER represents the air conditioner's efficiency when the outdoor temperature if 95 degrees F. The 13 EER is a more demanding requirement, do not take for granted that all 16 SEER equipment meets the 13EER requirement.