HVAC Upgrades that Qualify for Tax Credits

If you're considering replacing the heating or cooling equipment in your Broken Arrow home, you may be able to take advantage of federal tax credits when you choose energy efficient models. A knowledgeable local HVAC contractor can give you personalized advice about the specific equipment and efficiency level to best suit your needs and budget that might qualify you for extra savings like:

Tax Credits on Solar Energy Through 2021

Having a solar-ready heat pump or air conditioner installed in your home before December 31, 2021 may qualify you for a federal tax credit of up to nine percent of the equipment's cost. There's also an additional credit available on the solar module used to generate electricity for your new HVAC components:

• Until the end of 2019, the credit is thirty percent of the module cost and installation, with no dollar limit.

• In 2020, the available credit will be reduced to 26 percent, and for 2021 it drops to 22 percent.

The credits are available for equipment installations in existing and newly-constructed homes that are either principal or second residences (rental property doesn't qualify).

Tax Credits on Efficiency Improvements Through 2020

In December 2019, Congress passed legislation that renewed the tax credits for 2020 and made them retroactive back to 2018. For qualified HVAC improvements, homeowners may be eligible to claim the federal tax credits equal to 10% of the installed costs; a maximum tax credit of $500.

If you purchased a system from Air Assurance in the past, or are thinking of purchasing another system from us in the recent future, you could be qualified for up to $500 in additional savings in the form of tax credits for 2018, 2019, and 2020! The tax credit is retroactive.

Of course, we’re not tax professionals, so be sure to consult your tax advisor before filing your taxes. We just don’t want you to leave any money on the table! 

Here is a website for you to see for yourself:  Read About 2020 Tax Credits

For updated information from the IRS, you can visit their recently released information.

• Instructions for Form 5695

• Form 5695

 If you purchased a 95%+ AFUE Furnace, 16 SEER or above AC unit, 15 SEER or above Heat Pump, 14 SEER or above Package unit, or a tankless water heating system, or many other energy efficient home enhancements, you could qualify for an additional $500 off your taxes! 

Prior Tax-Savings on Energy Efficient HVAC Equipment

Through December 31, 2016, the federal government offered tax credits for different types of high-efficiency HVAC systems. They applied to Energy Star-qualified equipment installed in an existing home/principal residence, and the amount varied depending on the equipment type:

• Central air conditioners, packaged units, heat pumps and ductless mini-split systems qualified for a credit of up to $300.

• Propane, natural gas and oil furnaces and boilers qualified for a tax savings of up to $150.

• Geothermal heat pumps qualified for a credit of 30 percent of the cost, with no upper limit.

While the above-mentioned tax-saving credits have expired, they could be reinstated at some point in the future, so it's worthwhile checking for available credit updates on the federal government's Energy Star program website.

If you're thinking about upgrading to new energy-efficient HVAC equipment for your Broken Arrow home and you'd like to explore your options or learn whether there are tax credits available, contact us at Air Assurance.

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). For more information about HVAC upgrades and other HVAC topics, call us at 918-217-8273. Credit/Copyright Attribution: “stevepb/Pixabay”

Don't Let Those 2013 Tax Credits Get Away: Use Them on an Efficient A/C

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

Considering an A/C Purchase? 7 Reasons Why It's a Good Idea

Considering an A/C Purchase? 7 Reasons Why It's a Good Idea

If your A/C system is more than 10-12 years old or the cost to have it repaired is approaching near 50 percent of the unit’s value, you may be contemplating replacement. Why should you consider an A/C purchase right now? Consider these seven reasons.

1. It will save you money.Newer, high efficiency units offer substantial savings on your monthly energy bills that add up over the life of the system.

• You can save on your taxes.Tax credits from an A/C purchase could save you up to 30 percent of the cost of your new system.

• You get a warranty.Newer units come with a warranty, which save you on repair costs should you encounter any issues. If your outdoor unit needs replacement but you aren’t able to replace your indoor unit, or air handler, a dry-charged unit may be an option for you. A dry-charged unit uses your system’s existing refrigerant and also comes with a warranty.

• You help save the planet.The U.S. Government has mandated R-22 refrigerant be phased out by 2020 in favor of a newer, more ozone friendly refrigerant, R-410A. An A/C purchase that uses R-410A helps you avoid the rising costs and limited availability of R-22 as this refrigerant is phased out.

• It feels good.Better humidity and temperature control keep your home more comfortable.

• You’ll breathe easier.Newer systems better control temperature and humidity, increasing air quality by reducing mold and mildew growth.

• You won’t get caught with your pants down…Or want to take them off, as the case may be, if you are sitting around waiting for parts for your old A/C system to be serviced.

If you have additional questions as to whether an A/C purchase is right for you, contact Air Assurance. Air Assurance is family-owned and operated and has been serving the Tulsa metropolitan area with exceptional service since 1985.

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

Tax Credits For 2013: Make The Most Of These Savings

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

Geothermal Heat Pump: Which Type Is Best For Your Tulsa-Area Home?

Heating and cooling your home can seem like a constant battle against nature.  But nature itself provides a sustainable source of temperate air right in your own backyard.About ten feet below ground, the temperature year-round is near-constant at about 54 degrees.  This is significantly cooler than the summer highs, and warmer than the winter lows.  One of the most eco-friendly heating and cooling systems available, a geothermal heat pump uses this phenomenon to reduce the work your heater and your air conditioner have to do.Geothermal heat pumps route air through buried pipes called ground loops, allowing the loops to balance their temperature with the earth below the frost line.  This gives the heating and cooling systems a big head start on their temperature adjustment, making for impressive efficiencies.  Because of their high efficiency and environmental friendliness, geothermal heat pump systems are eligible for hefty tax credits.The geothermal loop best suited for your home will take full advantage of available terrain features.  Different kinds of ground loops include:

• The horizontal loop. Often the best option for homes with large yard space, as the trenches are among the shallower holes that can be dug for the ground loop system. A certain amount of space is required for these, making them less suitable for small properties.

• Pond loops. A variation on horizontal loops, these take advantage of bodies of water such as ponds. This is only practical for bodies of water which meet certain depth and size standards, however.

• Vertical loops. Though they require much deeper trenches than horizontal loops, vertical loops have a much smaller horizontal footprint, making them more practical for small properties and densely-built areas.

• Open-loop and groundwater systems. Where there's an abundant supply of groundwater, this can be used as the heating/cooling fluid in place of air.

While this article can give you an idea of the options available, the best way to discover which geothermal heat pump system is right for your home is to talk to an expert.  If you'd like to learn more, feel free to contact us at Air Assurance.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

Install Any Of These Energy-Efficient Products, And Get A Credit On Your 2011 Taxes

If you’ve been considering energy-efficient upgrades to your heating and cooling system, don’t hesitate. Act now to take advantage of 2011 tax credits for energy efficiency. In an effort to improve energy efficiency in Oklahoma and throughout the nation, the federal government is offering cash back on eligible upgrades, including:

• Central air conditioning

• Electric heat pumps

• Furnaces and boilers

• Advanced main air circulating fans

To qualify for these generous tax credits, your chosen installations must meet certain criteria. For instance, central air conditioners may be eligible for $300 back provided they meet these minimum requirements:

• Split systems – 13 EER and 16 SEER

• Package systems – 12 EER and 14 SEER

Electric heat pumps are also eligible for $300 in tax credits, provided they meet these minimum requirements:

• Split systems – 8.5 HSPF, 12.5 EER, and 15 SEER

• Package systems – 8 HSPF, 12 EER, and 14 SEER

To qualify for $150 back, furnaces and boilers must meet these minimum requirements:

• Natural gas or propane furnace – 95 AFUE

• Oil furnace – 90 AFUE

• Gas, propane or oil hot water boiler – 90 AFUE

You may also be eligible for money back on qualifying advanced main air circulating fans:

• If furnace qualifies - $50 back if your fan uses less than 2 percent of the energy consumed by the furnace

• If furnace doesn’t qualify – 30 percent back on the cost of the fan

With such generous tax credits on the table, it just doesn’t make sense to put off energy-efficient HVAC upgrades. If you have a system that is in need of replacement, let our trained technicians help you find an appropriate tax-eligible upgrade. For an expert consultation, contact Air Assurance 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.

Get Ready For Summer By Upgrading To High-Efficiency Air Conditioning

Summer is right around the corner here in the Tulsa Metro area, and that means it's just about time for your air conditioner to go back to work. If your system is old and/or approaching the end of its life, you might want to consider upgrading to a new high-efficiency air conditioning unit to provide your home with cool air. High-efficiency air conditioning units provide the best path to a cool house this summer. While they do cost a bit more upfront than standard A/Cs, you'll save a lot on utility bills, which means they'll go a long way towards paying for themselves in the long run.To find out how efficient an air conditioning unit is, look at its SEER (Seasonal Energy Efficiency Rating). Usually, high-efficiency air conditioning units have a SEER that falls somewhere between 16-23. By installing a high-efficiency air conditioning unit in your home, you can reduce the amount of energy you consume by as much as 30-50 percent.High-efficiency air conditioners can also improve on your home's indoor air quality. According to the EPA, poor air quality inside of homes and other buildings is one of the top five health risks to humans. High-efficiency air conditioning systems are better than standard models at filtering out dust, pollen and other allergens from the air.  This is usually because of their variable speed output or 2-stage operations, allowing for a more constant level of service.So high-efficiency A/C systems kill two birds with one stone. They help you combat rising energy costs while fighting off the summer heat at the same time.If you think that your home could benefit from a more efficient air conditioning system, please contact the professionals at Air Assurance. We can help assess your needs and find the right unit for your budget and your needs.Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems).  For more information, click here to download our free Home Comfort Resource guide. Air Assurance services Tulsa, Broken Arrow and the surrounding areas. To get started, check out our website or see our current promotions.