Your Guide to HVAC Tax Credits

Who doesn’t love saving money on your tax return every year, getting that refund to be as high as possible? Believe it is not; a little-known fact is that the federal government has tax credits that are going to be tied directly to improvements that you make to your home’s HVAC system. Taking advantage of these tax credits is as simple as understanding what they are, who will qualify for them, and how to apply. Our energy audit Jacksonville FL team of professionals can help you identify areas where you may be able to improve energy efficiency in the home and the action you take as a result can lead to credits.

Central Air Conditioning Credits

The first of the federal tax credits available related to your HVAC system will be those around central air conditioning. The tax credit amount that was tied to this in the 2016 tax year was $300. To qualify for this particular tax credit you have to have added a split system to your home that has a SEER rating that is equal to, or greater than, 16. A package system would have had to have a SEER rating of 14 or higher.
When you are purchasing a central air conditioning system in Florida, those two SEER numbers are going to be extremely familiar, especially if you want a system that is energy efficient for you throughout the year.

Heat Pumps

Heat pumps are another area where tax credits are offered. When you go with an air source heat pump that is ENERGY STAR certified and meets the other requirements, you are going to be able to get a $300 tax credit out of it. Split systems for this have to have an HSPF rating of 8.5 or greater, while package systems have to have a score of 8 or higher. If you look at it from the perspective of SEER ratings, 14 is the cut-off for the heat pump package systems.

Air Circulating Fan

Many people will install what is known as an advanced main air circulating fan. This is an efficient fan that is going to work to blow air that is created by your furnace throughout the home. The duct system will be the carrier of this air that has been created. The tax credit here for the installation of this is going to be $50. To qualify, the fan has to use no more than 2% of the total energy of the furnace.

Talk to a Tax Professional

You want to speak to a tax professional to see about taking advantage of any of these credits. All of the credits and incentives that are out there will be available to you as you begin to file your tax returns. The more that you understand what is out there, the better of a buying decision you can make. Instead of getting an HVAC system that has a lower SEER rating, maybe it makes more sense to get the one with higher energy efficiency for money savings purposes.

Check Local

You also want to check with your local electric company as they may have their incentives and rebates that they offer when you are in the market for a new system or an upgrade. Every electric company will vary, so check their website or give them a phone call.

The team of energy audit Jacksonville FL professionals that we have wants to work with you to identify areas of improvement in the energy usage space. We can cooperate with you to help you understand the benefits of upgrading your HVAC system or some other component of the home. The tax credits that go along with these contribute to cut down the cost and add to the savings, so be aware of them and take advantage!

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