Find Out If You Qualify for These HVAC Tax Credits and Rebates Published on April 12, 2016 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 >= 8.5EER >= 12.5SEER >= 15If you choose a package system:HSPF >= 8EER >= 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 >= 13SEER >= 16Requirements for package system:EER >= 12SEER >= 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 ≥ 95For 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 ≥ 2.0For 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 >= 17.1COP >= 3.6Water-to-Air – Open Loop:EER >= 21.1COP >= 4.1Water-to-Water – Closed Loop:EER >= 16.1COP >= 3.1Water-to-Water – Open Loop:EER >= 20.1COP >= 3.5Direct Expansion:EER >= 16COP >= 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 FactorSEER – Seasonal Energy Efficiency RatioCOP – Coefficient of PerformanceEER – 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. Back To BlogContact Us