Green Heating, Cooling Products Could Earn $1,500 in Tax Credits

Energy efficient heating and cooling products already provide meaningful energy savings, but did you know they can also help you out this tax season? Thanks to Energy Star federal tax credits, you could recoup 30 percent of your green heating or cooling investment (including installation)--up to $1,500.

Which Green HVAC Products Qualify?

Unfortunately, not all Energy Star HVAC products qualify for tax credits. Those that do must meet the following requirements:

Advanced Main Air Circulating Fans

• Must use no more more than 2 percent of your furnace's total energy
• If the fan qualifies, but not your furnace, you may only claim the cost of your fan on your taxes

Air Source Heat Pumps

• Split systems must have a heating seasonal performance factor (HSPF) of at least 8.5, an energy efficiency ratio (EER) of at least 12.5, and a seasonal energy efficiency ratio (SEER) of at least 15
• Package systems must have an HSPF of at least 8, an EER of at least 12, and a SEER of at least 14

Central Air Conditioning

• Split systems must have a SEER of at least 16, and an EER of at least 13
• Package systems must have a SEER of at least 14, and an EER of at least 12

Gas, Propane, or Oil Hot Water Boilers

• Must have an Annual Fuel Utilization Efficiency (AFUE) of at least 90

Natural Gas or Propane Furnaces

• Must have an AFUE of at least 95

Oil Furnaces

• Must have an AFUE of at least 90

If you're unsure whether your purchase qualifies for this tax credit, contact a HVAC contractor for clarification. For qualifying non-HVAC Energy Star products, please refer to the U.S. Environmental Protection Agency's Energy Star Web site.

Can I Claim More than One Green Heating or Cooling Product?

You can claim a tax credit for multiple green HVAC products, so long as your total credit does not exceed $1,500 in a two-year period.

How Do I Apply for the Tax Credits?

To claim your credit, simply report your qualified expenses on either IRS Form 5695, or on line 52 of your 1040.

What Else Should I Know?

Keep the following in mind when applying for your energy tax credit:

• There are no upper or lower income limits for qualifying taxpayers.
• These energy tax credits are non-refundable, which means you cannot get a credit beyond what you've paid in taxes.
• This credit cannot be carried over to future years

Questions? Don't hesitate to ask your local HVAC contractor. Request a free quote and schedule an appointment today.