Earlier this year, the government decided to extend federal tax credits on the purchase of energy-efficient HVAC equipment through the end of the year. With 2011 drawing to an end, the time to act is quickly closing. You don’t want to miss your chance to save big on a new system.
There are two ways to ensure that a system is eligible for the 2011 tax credits for energy efficiency. The first way is to get ahold of your HVAC contractor and ask him/her for the manufacturer’s statement of the system. This document should clarify whether or not the system in question is rebate-eligible. Otherwise, look for one that’s Energy Star approved. Although not all Energy Star equipment is eligible for the credits, most of them meet the requirements.
For high-efficiency gas, propane or oil furnaces, homeowners can receive a tax credit of $150 as long as the system has an AFUE (annual fuel utilization efficiency) rating of at least 95 percent.
For the purchase of an air-source heat pump, the government is offering a $300 tax credit. For split-system air-source heat pumps, the SEER (Seasonal Energy Efficiency Ratio) must be equal to or greater than 15. For a package-system, the SEER must be at or above 14.
Geothermal heat pumps bring in the biggest savings. For the purchase of a new geothermal system, the government is offering a tax credit of 30 percent on the total cost of the system, including installation and labor. There’s no limit on the amount you can claim as long as it’s 30 percent of the cost.
For a closed-loop geothermal system, which uses a closed piping system to hold heat, the unit must have an EER (Energy Efficiency Ratio) of 14.1 and a COP (Coefficient of Performance; measures efficiency of system at by comparing heating capacity to energy input) of 3.3.
For an open-loop system, where the heat fluid is contained in a larger area, the EER has to be 16.2, and the COP has to be 3.6.
For more information on the 2011 tax credits for energy efficiency, contact the professionals at Ernst Heating & Coolingtoday.
Our goal is to help educate our customers 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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