subject: Wanna Save Some Money On Yours Taxes, Read About The Energy Star Hvac Tax Credit [print this page] President Obama's new energy efficiency tax credits have been expanded for 2009-2010. For example, previous per-appliance caps for HVAC systems, which kept them at $300 or less, have been removed. HVAC is an acronym that commonly stands for Heating, Ventilation, and Air-Conditioning. If you are considering upgrading your residential HVAC system, this is your year.
Keep in mind that not all Energy Star rated HVAC appliances are tax credit worthy. The beauty of buying Energy Star HVAC products is that they lower your energy bills. Even without the ARRA tax credit, an Energy Star HVAC will pay you back in a practical amount of time. Do a bit of research about HVAC systems before you choose one. If you want to take advantage of the tax incentive, make sure the HVAC system you install is eligible for the tax credit before you buy.
Homeowners are now eligible for up to a $1,500 tax credit for qualified home improvements. In fact, homeowners that previously claimed credits in 2006-2007 are still eligible for the entire $1,500 limit. The time frame for this tax credit is January 1, 2009 to December 31, 2010. All purchases and installation must take place within this two year span to qualify for the credit.
What HVAC appliances does the Tax Credit cover?
There are five categories of HVAC appliances included in the tax credit legislation. To qualify, you must have your equipment installed by a certified technician. A bonus is that installation cost, not just the purchase price, is also included in the tax credit.
1. Advanced Main Air Circulating Fan. Main air circulating fans are part of the "V" in HVAC. It is an efficient fan or blower motor that sends hot air from your furnace through your duct system. To qualify, the fan must use 2% or less of the furnace's total energy.
2. Air Source Heat Pumps. Heat pumps are an energy efficient alternative to furnaces. Air source heat pumps are most effective in moderate climates. Heat pumps use electricity to move heat from cooler spaces to warmer spaces, rather than generate heat. During the heating season, warm air is brought in from outside to warm the home. During the cooling season, warm air from inside the home is moved outside.
3. Central Air Conditioning. Not all of central air applicances qualify for the ARRA tax incentive. There is a lot of variety in central air conditioning units. Ask your HVAC contractor about the types of central air that qualify for the tax credit.
4. Natural Gas, Propane, or Oil powered Hot Water Boilers. Boilers heat water and circulate that hot water through your home. Boiler systems use a system of baseboard heating units, radiant tubing installed in the floors, and radiators.
5. Natural Gas or Propane Furnace. Furnaces generate heat using fuel and air combustion. The heat is circulated through the ventilation system using an advanced main air circulating fan. Though gas and propane furnaces qualify for the tax credit, furnaces are overall the least energy efficient.
Make sure to talk to an HVAC contractor or two before you make any final decisions. Your best choice for an HVAC upgrade will depend on your local climate, your budget and the size of your home. A good contractor will help you assess the size and layout of your home to optimize your HVAC renovation.
