When Congress avoided the so-called “fiscal cliff” at the New Year, they extended the federal energy tax credits that expired at the end of 2011, helping homeowners reduce the financial impact of HVAC upgrades. The tax credit is also retroactive, so anyone who installed qualifying equipment in 2012 can claim the credit.
To qualify, the heating and cooling equipment must meet these criteria:
- Furnaces and boilers. The annual fuel utilization efficiency (AFUE) must be 95 percent or higher. A 95 percent efficient system wastes just 5 percent of the fuel it burns and is considered a high-efficiency system.
- High-efficiency motors. Motors that use less than 2 percent of the energy a furnace blower consumes qualify for the energy tax credits.
- Heat pumps. A heat pump both heats and cools and the system must have a minimum SEER of 15 and a heating seasonal performance factor (HSPF) of 8.5 to qualify for the credits.
- Air conditioners. A split air conditioning system must have a minimum seasonal energy-efficiency ratio (SEER) of 16 SEER, while a package unit must have a minimum SEER of 14. Air conditioners with efficiencies this high often qualify for the new Energy Star program called “Most Efficient.”
The tax credits cover 10 percent of the cost and have a cap of $300 for air conditioners and heat pumps and $150 for heating systems. If you install a high-efficiency motor, you can take a $50 credit. Any combination of these tax credits can’t exceed $500.
The credits will help you offset the cost of upgrading your HVAC equipment with high-efficiency systems. Doing so lowers your ongoing heating and cooling costs and helps cut the national demand for fuel and electricity. Credits are also available for such energy-efficient home improvements as windows and insulation.
If you would like to learn more about taking advantage of these energy tax credits this year, please contact us at Energy 1 Heating & Air Conditioning. We’ve provided superior HVAC services for the Lorain area for more than 33 years.
Our goal is to help educate our customers in Lorain, Ohio about energy and home comfort issues (specific to HVAC systems). For more information about energy tax credits and other HVAC topics, download our free Home Comfort Resource guide.
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Energy 1 Heating & Air Conditioning
1 (440) 246-5440
Serving the Lorain, OH Area