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

It’s April! It’s spring! It’s…tax season?!

Taxes aren’t top of everyone’s fun list, but what if you’re getting some dollars back? Church Services is here with the HVAC tax credits and rebates from EnergyStar® that you can get in 2016 if you decide to upgrade your home and make it more energy-efficient with one of these common systems.

• Air Source Heat Pumps

You can earn up to $300 if you decide to invest in qualified air source heat pumps. To receive your HVAC tax credit or rebate, you must meet the following requirements:

Split System:

HSPF >= 8.5

EER >= 12.5

SEER >= 15

If you choose a 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:

Requirements for split system:

EER >= 13

SEER >= 16

Requirements for package system:

EER >= 12

SEER >= 14

• Gas, Propane, or Oil Furnaces and Fans

For approved gas and/or oil furnaces, you can earn up to $150 in tax credits and rebates for the furnaces or $50 in tax credits and rebates for advanced main air circulating fans. The requirements for the HVAC tax credits are below:

For furnaces:

AFUE ≥ 95

For fans:

Annual electricity use ≤ 2% of total furnace energy

• Water Heaters (non-solar)

Qualified non-solar water heaters can earn you up to $300 in HVAC tax credits and rebates. For requirements, see below:

If you choose 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 path and choose a geothermal heat pump, which is more efficient since they use the earth’s natural heat, you can receive 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 choose to buy a solar water heater, you can also receive 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, say 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.

Keep in mind these HVAC tax credits and rebates only apply to existing homes and new construction that are principle residences or second homes. Rental properties do not quality for these credits and rebates. Below are definitions for reference:

HSPF – Heating Seasonal Performance Factor

SEER – Seasonal Energy Efficiency Ratio

COP – Coefficient of Performance

EER – Energy Efficient Ratio

Dear grief, that was A LOT of information. For more information, visit EnergyStar’s website or visit the U.S. Department of Energy page for tax credits, rebates, and savings. If you decide to upgrade your home this year, Church Services will happily 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.