The following information is taken from the official Energy Star website and is for educational purposes. If you feel you qualify for a rebate or tax credit on HVAC installation and repair, call us today at 757-784-3181.
Federal Tax Credits for Consumer Energy Efficiency
If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit. Below you will find an overview of the federal tax credits for energy efficiency.
Please note, not all ENERGY STAR qualified products qualify for a tax credit. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.
For a list of qualified products, go to the Consortium for Energy Efficiency product directory, click on Air Conditioners, then in the “CEE Tier” enter “Residential Advanced Tier 3” for CAC Split Systems, and “Residential Tier 2” for CAC Package Systems and ASHPs.
Note — not all ENERGY STAR products will qualify for the tax credit. View ENERGY STAR criteria below.
Taxpayer will need Manufacturer’s Certification Statement. Manufacturer’s Certification Statement is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.
Furnace, Air-Source Heat Pumps and Central Air Conditioners Key Product Criteria
Air-Source Heat Pumps
Tax Credit Amount: $300 Requirements
HSPF = 8.5 EER = 12.5 SEER = 15
Package systems: HSPF = 8 EER = 12 SEER = 14
Central Air Conditioners
Tax Credit Amount: $300 Requirements
SEER = 16 EER = 13
Package systems: SEER = 14 EER = 12
*Energy Efficiency Ratio
Air-Source Heat Pump (ASHP): An air-source unitary heat pump model consists of one or more factory-made assemblies which normally include an indoor conditioning coil(s), compressor(s), and outdoor coil(s), including means to provide a heating function. ASHPs shall provide the function of air heating with controlled temperature, and may include the functions of air-cooling, air-circulation, air-cleaning, dehumidifying or humidifying.
Central Air Conditioner: A central air conditioner model consists of one or more factory-made assemblies which normally include an evaporator or cooling coil(s), compressor(s), and condenser(s). Central air conditioners provide the function of air-cooling, and may include the functions of air-circulation, air-cleaning, dehumidifying or humidifying.
Heating Seasonal Performance Factor (HSPF): This is a measure of a heat pump’s energy efficiency over one heating season. It represents the total heating output of a heat pump (including supplementary electric heat) during the normal heating season (in Btu) as compared to the total electricity consumed (in watt-hours) during the same period. HSPF is based on tests performed in accordance with AHRI 210/240 (formerly ARI Standard 210/240)1.
Seasonal Energy Efficiency Ratio (SEER): This is a measure of equipment energy efficiency over the cooling season. It represents the total cooling of a central air conditioner or heat pump (in Btu) during the normal cooling season as compared to the total electric energy input (in watt-hours) consumed during the same period. SEER is based on tests performed in accordance with AHRI 210/240 (formerly ARI Standard 210/240)1.
Energy Efficiency Ratio (EER): This is a measure of the instantaneous energy efficiency of cooling equipment. EER is the steady-state rate of heat energy removal (e.g., cooling capacity) by the equipment in Btuh divided by the steady-state rate of energy input to the equipment in watts. This ratio is expressed in Btuh per watt (Btuh/watt). EER is based on tests performed in accordance with AHRI 210/240 (formerly ARI Standard 210/240)1.
Advanced Main Air Circulating Fan No more than 2% of furnace total energy use. (fan qualifies, but the furnace does not?) 30% of cost, up to $1,5002
The IRS is currently reviewing this issue for clarification. The only scenario that is currently clear is that if the furnace and the fan are both covered on their own, then you can get the full 30% off the cost of the furnace. If the fan is qualified, but the furnace is not, you will most likely NOT be able to take 30% off the cost of the entire furnace.
This will be updated as soon as the IRS issues guidance on this issue.