Tax Credits Still Available
Legislation signed into law by President Obama in December 2010 allows you to continue to earn federal tax credits for the installation of high efficiency heating and air conditioning systems.
Updated Tax Incentives for Homeowners
You may be eligible to claim up to $500 in tax credits, subject to caps based upon the type of equipment installed, for energy efficient retrofits to your home.
Eligible work includes higher efficiency heating, ventilating and air conditioning (HVAC) equipment in your primary residence.
You may now qualify for tax credits equal to 10% of the costs (up to a $300 limit) for installing a high-efficiency central air conditioner or heat pump.
You may also qualify for tax credits equal to 10% of the costs (up to a $150 limit) for installing a qualified furnace or hot water boiler.
A smaller tax credit of 10% of the installed cost (up to a $50 limit) is available for the installation of system with an advanced main air circulating fan.
What is Considered a High-Efficiency Unit?
To qualify, a typical split-system central air conditioner must have a minimum efficiency rating of 16 SEER and 12 EER. SEER is Seasonal Energy Efficiency Ratio and is the miles-per-gallon of the air conditioning business. Packaged air conditioners must meet or exceed 14 SEER and 12 EER.
An air source heat pump must meet or exceed 15 SEER and 12.5 EER and 8.5 HSPF – a measure of heat pump performance efficiency – in order to qualify for the tax credits. Packaged heat pumps must meet or exceed 14 SEER, 12 EER and 8 HPSF.
Natural gas furnace and natural gas water boilers must meet or exceed 95% AFUE (Annual Fuel Utilization Efficiency). A heating system that is 95% AFUE means that 95% of the heat it produces stays in your home while only 5% goes up the chimney.
If I Claimed More Than $500 in Tax Credits Under The Previous Tax Credit Programs, Am I Still Eligible?
No. The law reinstates the lifetime tax credit limits which disqualify you if you claimed more than $500 in 25c tax credits since January 1, 2005 , from any further credits.
Why You Should Consider an Upgrade
Advances in technology over the last ten years mean that today’s higher efficiency HVAC equipment use less energy, runs more quietly, and provides improved indoor air quality and comfort. And by using less energy and improved refrigerants, your new HVAC equipment is better for the environment.
Most homeowners would like to reduce their energy bills with higher efficiency HVAC equipment, and these tax credits help make the initial investment more affordable.
Call us to find the right qualified equipment that meets your budget. We can show you how much energy (and money) you could save over the long-term.
Bobby Ring President
Note: Always consult your tax adviser regarding your eligibility to claim tax credits.