Find Out If You Qualify for These HVAC Tax Credits and Rebates

It’s that time of year again…tax season!

Taxes aren’t top of everyone’s fun list, but what if you’re getting some dollars back? Stevenson Service Experts Heating & Air Conditioning is bringing you the HVAC tax credits and rebates from EnergyStar® that you can get in 2016 if you decide to upgrade your home to be more energy-efficient with one of these standard systems.

• Air Source Heat Pumps

Earn up to $300 in HVAC tax credits and rebates with a qualified air source heat pump. Qualifications are below:

Split System:

HSPF >= 8.5

EER >= 12.5

SEER >= 15

Qualifications for package system:

HSPF >= 8

EER >= 12

SEER >= 14

• Central Air Conditioning (CAC)

Investing in a qualified central air conditioning system can also earn you $300 in HVAC tax credits and rebates. See below to see if your system qualifies:

If you choose a split system:

EER >= 13

SEER >= 16

Package System:

EER >= 12

SEER >= 14

• Gas, Propane, or Oil Furnaces and Fans

Earn up to $150 in HVAC tax credits and rebates with a qualified gas and/or oil furnace. Qualifications are below:

Requirements for furnaces:

AFUE ≥ 95

Requirements for fans:

Annual electricity use ≤ 2% of total furnace energy

• Water Heaters (non-solar)

For approved non-solar water heaters, you can earn up to $300 in tax credits and rebates. The requirements for the HVAC tax credits are below:

For an electric heat pump:

Energy factor ≥ 2.0

For gas, oil, or propane:

Energy factor ≥ 0.82 or Thermal efficiency of at least 90%

• Geothermal Heat Pumps

If you decide to go the geothermal heating route and choose a geothermal heat pump, which is more efficient since they use the earth’s natural heat, you can get 30% of cost (no upper limits apply) back in HVAC tax credits and rebates. Due to the variety of styles, the requirements are provided below:

Water-to-Air – Closed Loop:

EER >= 17.1

COP >= 3.6

Water-to-Air – Open Loop:

EER >= 21.1

COP >= 4.1

Water-to-Water – Closed Loop:

EER >= 16.1

COP >= 3.1

Water-to-Water – Open Loop:

EER >= 20.1

COP >= 3.5

Direct Expansion:

EER >= 16

COP >= 3.6

• Solar Energy Systems

If you want to purchase a solar water heater, you can also earn 30% of cost (no upper limits apply) back in HVAC tax credits and rebates. The requirements for this tax credit, as stated by Energy Star, confirm that at least half the energy generated by the qualifying property must come from the sun. The system must be certified by the SRCC (Solar Rating and Certification Corporation) or a comparable entity endorsed by the government of the state in which the property is installed. Furthermore, photovoltaic systems must provide electricity for the residence and must meet applicable fire and electrical code requirements.

Note that the HVAC tax credit and rebates do not include swimming pools or hot tubs. Energy Star is clear that to be eligible for the tax credits, the water must be used in the home.

Note that these HVAC tax credits and rebates only apply to existing homes and new construction that are principle residences or second homes. Rental properties are excluded from these credits and rebates. We’ve also provided definitions below:

HSPF – Heating Seasonal Performance Factor

SEER – Seasonal Energy Efficiency Ratio

COP – Coefficient of Performance

EER – Energy Efficient Ratio

Geez, that was SO MUCH information. For additional information, visit EnergyStar’s website or visit the U.S. Department of Energy page for tax credits, rebates, and savings. If you want to upgrade your home this year, Stevenson Service Experts Heating & Air Conditioning will gladly walk you through the options and choose the best heating and cooling system for your residence. Call us for your complimentary in-home Home Comfort Analysis.