Don't Let Those 2013 Tax Credits Get Away: Use Them on an Efficient A/C
Homeowners who install qualifying cooling systems this year can take advantage of tax credits from the federal government to help offset the cost. Those that qualify are high-efficiency central air conditioners and heat pumps. If your equipment is over 10 years old, requires frequent repairs, or uses a lot of electricity, this summer might be an advantageous time to replace it. The minimum energy efficiency for central cooling systems stands at 13 SEER (seasonal energy efficiency ratio). In order to qualify for the tax credit whose maximum amount is $300, new equipment has to have a minimum rating from 14 to 16 SEER, and depends on whether you're installing a split or package system and whether it's an air conditioner or a heat pump.You and your HVAC contractor can discuss which system would be best for your home, along with going through the other important elements when choosing a new cooling system, particularly its size. Contractors use software called Manual J to perform a load calculation to arrive at the right tonnage for your new system.Going by the size of your existing equipment could result in a system that's too large or small for your home. Oversized systems drive up energy bills and leave humidity behind. They run in short cycles more frequently, which increases the wear on all the parts. A system that's too small won't keep you as comfortable during our hottest weather.Once you've chosen the right system for your home, a thorough ductwork inspection should be made to assess your current system, its size and integrity. The leaks should be sealed with mastic or metal tape. Choosing a shady location for the outdoor condenser also helps you get the most efficiency from your new system. The hot refrigerant from your home cools faster if the condenser is out of the sun and has plenty of clearance on all sides.If you'd like more information about the 2013 tax credit and choosing a new system, contact Air Assurance. We've provided top-notch HVAC services for the Broken Arrow area for nearly 30 years.Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems). Image courtesy of Shutterstock
Ductless mini splits are the result of technological advancements in heating and cooling that allow homeowners to deliver conditioned air into nearly any space. Long used in other countries like Japan and Europe, ductless mini splits are gaining ground in the U.S. for good reason. Learn their advantages, and then give mini splits a second look when upgrading.
Easy installation – Ductless systems deliver conditioned air into the home with individual air handlers installed in each room, instead of relying on ducts. Therefore, mini splits can go where ductwork can’t. One outdoor condenser connects to four indoor air handlers, which can be installed high up on walls or tucked into dropped ceilings. Floor-standing models are also available.
Efficiency – Ductless mini splits score high in efficiency, with Seasonal Energy Efficiency Ratio (SEER) ratings that are competitive with central air conditioning. Further, mini splits often reach higher operational efficiencies, because they aren’t subject to the energy losses from ductwork.
Two-in-one – Purchase a ductless mini split heat pump, and you’ll get a two-in-one system that provides both heating and cooling. Heat pumps source heat in the air, and then move it into the home, and they provide efficient cooling in the summer, and heating in winter when temperatures are above freezing.
Zoning – With individual air handlers installed in the rooms, you can control the output of each one separately. As a result, ductless mini splits are a type of zoning system, allowing you to keep the heating on in one space, while turning off the heating in unused spaces.
Comfort – Often, home design leads to differing heating and cooling loads in various rooms of the home. For optimal comfort, some rooms require more conditioned air than others, and ductless systems allow you to control how much conditioned air each room receives. This is an advantage when installed, for instance, on the second floor, where rooms require less heating and more cooling than the first floor to stay comfortable.
Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems). Image courtesy of Shutterstock
When the Congress passed legislation to avoid the fiscal cliff, it also resurrected the tax credit for installing energy-efficient heating and cooling equipment. The credit covers qualifying equipment purchased and installed from January 1, 2012, through December 31, 2013. The type of equipment and the minimum efficiency standards they must have include:
Furnaces and boilers. These appliances must have a 95 percent AFUE (annual fuel utilization efficiency). The current minimum for combustion furnaces is 78 percent AFUE, which means that they waste 22 percent of the fuel they consume. A 95 percent efficiency furnace wastes just 5 percent of the fuel, which lowers consumption substantially.
Heat pumps. The minimum SEER for qualifying heat pumps is 15 and the minimum HSPF (heating seasonal performance factor) has to be 8.5 or higher to qualify for the tax credit.
Air conditioners. Package air conditioners must have a minimum SEER (seasonal energy efficiency ratio) rating of 14. A package system is one that combines the heating and cooling in a single unit and is located either on the roof or in the yard. A split-system air conditioner must have a SEER of at least 16. The current minimum for all central air conditioners stands at 13.
Fans for air handlers. A high-efficiency fan in the air handler qualifies for a credit, as long as it doesn't consume more than 2 percent of the total energy that the furnace, air conditioner or heat pump uses.
There are some other criteria, such as minimum EER ratings to go along with the above. If you have any questions, our experts can help.
The credits for air conditioners and heat pumps have a limit of $300, while the maximum for furnaces is $150. A high-efficiency fan qualifies for a credit of $50. Under this particular program (25C), taxpayers can only claim $500 total tax credits for the period from 2005 through the end of 2013. And Geothermal units still qualify for a 30% no limit tax credit that is still good through 2016.The credits help offset the cost of installing high efficiency HVAC equipment, which helps homeowners start enjoying lower utility bills faster. If you would like more information about taking advantage of the 25C program and taking a tax credit, contact Air Assurance. We've provided HVAC services for the Broken Arrow region for nearly 30 years.Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems). Image courtesy of Shutterstock
Over the past few years, the media has made a pretty big deal about government tax credits that have made upgrading to energy-efficient equipment a reality with increased savings. However, you may not have heard as much about other rebates from manufacturers and utility companies that you can access when upgrading to high-efficiency air-conditioning systems. For many homeowners, these combined rebates can often mean the difference between upgrading and maintaining the status quo.The Public Service Company of Oklahoma offers rebates of $100 to $600, depending on the size and Seasonal Energy Efficiency Ratio (SEER) of your high-efficiency air conditioner or heat pump. Larger systems and higher SEER ratings get bigger incentives and rebates. The guidelines restrict the incentive to a replacement system that uses the same (current) energy source for residential (single or multi-family) homes and small commercial buildings. They also offer incentives of up to $1500 for an entire home performance upgrades which include duct sealing, insulation, radiant barriers, home envelope sealing, etc.Lennox, a manufacturer of heating and cooling equipment, indoor air quality products, and comfort controls, also offers savings on energy-efficient products. High-efficiency air-conditioning or heat-pump systems qualify for up to $1,400 when combined with a thermostat and indoor air quality system.High-efficiency air conditioners make energy savings possible for Oklahoma homeowners. While they often cost more up-front, incentives make them more affordable. High-efficiency systems are rated SEER 16 to 23 and have a low lifetime cost. Lifetime cost takes into account the spending a system requires over the course of its life. This takes into account regular preventive maintenance costs, fuel costs, and repairs. With the energy savings that high-efficiency systems get, you get a relatively quick return on your investment and save on monthly utility bills long after you’ve paid for the system.Why not take advantage of combined rebates from every avenue possible, to drive down the cost and make your new system replacement happen? The experts at Air Assurance can assess your home’s needs, assist you in selecting an A/C, and help you take advantage of manufacturer and utility company incentives to get you the maximum savings possible. Call us today.Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems). For more information, click here. Air Assurance services Tulsa, Broken Arrow and the surrounding areas. To get started, check out our website or see our current promotions.
