New Tax Laws - Cherry Hill, NJ

New Vehicle Sales Tax Deduction
Qualified motor vehicle taxes are deductible either as part of the standard deduction or as an itemized
deduction. Qualified motor vehicle taxes are any state or local sales or excise tax imposed on the
purchase of a qualified motor vehicle.

Property Standards for Energy Credit
Various changes have been made to the standards that property must meet to qualify for the
nonbusiness energy property credit. These changes will take effect for property places in service after
2009, except for the change regarding biomass fuel stoves.

Insulation must meet the prescriptive criteria for that material or system established by the 2009
International Energy Conservation Code, as in effect on February 17, 2009.

Exterior windows, skylights, and doors must have a U factor equal to or below 0.30 and a solar
heat gain coefficient (SHGC) of 0.30.

Electric heat pumps must meet the following standards:

Central air conditioners must meet the following standards:

Natural gas, propane, or oil water heaters must have either an energy factor of at least 0.82 or a
thermal efficiency of at least 90%.

Biomass fuel stoves that burn biomass fuel to heat a dwelling unit located in the United States and
used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and which has a
thermal efficiency rating of at least 75 percent, may entitle the homeowner to a tax credit of up to
$1,500 if purchased between January 1, 2009 and December 31, 2009.

A seasonal energy efficiency ratio (SEER) greater than or equal to 15, energy efficiency
ratio (EER) greater than or equal to 12.5, and heating seasonal performance factor (HSPF)
greater than or equal to 8.5 for split heat pumps, and

A SEER greater than or equal to 14, EER greater than or equal to 12, and HSPF greater
than or equal to 8.0 for packaged heat pumps.