Air Source Heat Pumps Tax Credit - Tulsa, OK

Air Source Heat Pumps Tax Credit - Tulsa OK

Determining the best heating method for your home in this area can be a challenge, since both heat pumps and combustion furnaces are viable choices for this climate. Weather throughout the winter tends to be mild, but there are times when the thermometer dips below freezing, which may influence your choice of the best heating method for your home and family.

These characteristics of each type of heating system might help you decide:

• Heat pumps work well in this climate for both heating and cooling. They are an energy-efficient option. Heat pumps warm your home by extracting the heat from the outdoor air. They work well until the temperature falls below freezing. At this point, there is less heat in the air, so the appliance will have to work harder. However, high-efficiency heat pumps are available that work effectively at much colder temperatures. If you require an exceptionally warm house, even during milder weather, you may want to consider a gas or oil furnace as your best heating method.

• The typical heat pump uses one unit of energy to provide three units of heat. A gas furnace or oil furnace never reaches such high efficiency, although high-efficiency systems can be 97% efficient, compared to 300% efficiency from a heat pump.

• Heat pumps have a high degree of safety compared to a gas or oil furnace. Any time that combustible fuels are used indoors, there is a risk of carbon monoxide (CO) poisoning and fuel leaks.

• A heat pump contributes to outdoor noise even in the winter. It uses the compressor inside the outdoor condenser to transfer heat in the same way it removes heat from your home in the summer. If you want a quiet yard in the winter, consider a furnace as your preferred heating method.

• If you need to replace your air conditioner along with your heating method, it makes financial sense to choose a heat pump. 

  ENERGY EFFICIENT HOME IMPROVEMENT TAX CREDIT (25C) PROGRAM

  The previous Nonbusiness Energy Property credit (25C) for installing high-efficiency equipment was extended through 2022 and provides federal tax credits of up to $500.
  The amended Energy Efficient Home Improvement Credit (25C) begins in 2023 and extends through 2032. It increases the tax credit limits for high-efficiency equipment as follows:

  1. Eligible equipment includes:

     • Heat pumps and heat pump water heaters

     • Energy-efficient HVAC systems (including furnaces, boilers, and central AC)

  2. The 25C credit has an annual cap of $1,200 (except heat pump):

     • Up to $600 each for a qualified air conditioner or gas furnace, with an annual cap of $1,200

     • Up to $2,000 with a qualified heat pump, heat pump water heater, or boiler

  There are no income requirements for this tax credit, and it cannot be combined with other federal programs.

  WHO CAN USE THIS CREDIT?

  PRINCIPAL RESIDENCE OWNERS

  Must be an existing home & your principal residence. New construction and rentals do not apply.

  A principal residence is the home where you live most of the time. The home must be in the United States. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home.

For professional advice about the best heating method based on your home and family, contact the pros at Air Assurance. We provide trusted HVAC services to Broken Arrow homeowners.

Geothermal: The Energy Gem Buried In Your Yard

The temperature of the earth is approximately 55 degrees across the globe below the frost line, regardless of climate. Geothermal heat pumps utilize this constant source of heat energy by transferring it from the ground into your HVAC system. Using the constant and free geothermal heat source below your property is a highly energy-efficient and environmentally-friendly way to condition the air inside your home.Geothermal systems consist of two parts: an indoor heat pump unit that adjusts the air temperature, and a ground loop of piping that transfers the heat energy from the earth into the heat pump via a liquid carrier. The system does not have an exterior condensing unit like conventional systems, and therefore runs much more quietly.Geothermal is a ubiquitous heat energy source that does not depend on the variable utilities market. Because heat is transferred rather than generated, a geothermal system does not rely on typical fuel sources such as gas, propane or electricity. The best gas furnaces available on the market provide up to 94 percent efficiency, while a geothermal system provides up to 400 percent efficiency.The initial cost of a geothermal system is higher than with conventional systems because of the need to drill into the ground to install the ground loop. However, because of the gain in energy efficiency, the initial costs are recoverable over the payback period, which will vary depending on your energy usage and system size. Check to see if you qualify for current federal, state and local tax incentives, which are available to help consumers recover higher initial costs and encourage the use of the virtually limitless heat source beneath their feet with geothermal.For more information on how geothermal systems can provide efficient heating and cooling to your home, contact the experts at Air Assurance. We've been providing quality products and services to Broken Arrow residents for more than 30 years.Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems). Air Assurance services Tulsa, Broken Arrow and the surrounding areas. Visit our websiteto see our current promotionsand get started today!     Photo courtesy ofShutterstock.