For everyone who is trying to upgrade their air conditioning systems to equipment that functions more proficiently, the government is now offering tax credits for energy-efficient HVAC systems. And so, if the cost of updating equipment was a concern to you before, it is now time to take advantage of the tax rewards. You will not only receive a reduction on the initial cost, but the amount you can save over the life of your new system will more than compensate for the total amount you originally spent.
To be confident that the device you\’re thinking about for your household is qualified to receive the credits, you ought to ask your HVAC contractor for that system\’s manufacturer\’s statement. Additionally, systems that have the blue and white Energy Star label often qualify for the tax credits.
HVAC Tax Credits 2012 – System Requirements
The federal government is offering a 30% tax credit to the homeowners who purchase high-efficiency heating and cooling systems. This tax credit covers the initial price, plus the price of installation.
The following is a list of the particular highly efficient air conditioning systems that you can get for your household. For each system, the requirements to meet the eligibility for the tax credits are stated.
Geothermal Heat Pump Systems
Geothermal heat pump systems work simillar to a refrigeration system. In winter, they take thermal energy from the ground and send it into your home to heat your living area. During summer, they take the thermal energy from the inside of your household and direct it into the ground, therefore cooling off your home. Geothermal heat pump systems operate with an extremely high efficiency rate.
To recieve the tax credit for a geothermal heat pump system, the subsequent prerequisites will have to be met:
-Closed Loop Systems: Closed loop heat pumps have to have an EER with a minimum of 14.1 and a COP of at least 3.3.
-Open Loop Systems: Open loop heat pumps require an EER with a minimum of 16.2 and a COP with a minimum of 3.6.
-Direct Expansion: Direct expansion heat pump systems need to have an EER with a minimum of 15 as well as a COP with a minimum of 3.5.
(EER – Energy Efficiency Ratio/COP – Coefficient of Performance)
Residential Wind Turbines
With the cost of electrical power consistently going up, the need for residential wind turbines has gone through the roof. Wind turbines gather kinetic energy from the wind and transform it into electrical energy which can be used in your house. This cost-free electrical power will allow you to cancel out the soaring prices of energy and will help you save money on your electricity bills.
To recieve the tax credit for a residential wind turbine, the following requirements must be satisfied:
-Wind turbine will need to have a nameplate capacity of no greater than 100 kilowatts.
If you live in a windy location and are considering purchasing a residential wind turbine for your home, you should know that wind turbines have the potetial to generate over a couple of hundred watts of power on a regular day!
Solar Power Systems
Just like residential wind turbines, the utilization of solar technology has also increased considerably. Solar powered energy systems take the suns energy and change it into energy that can be used in your house. Since energy from the sun is an infinite source, the energy you\’ll get is totally free, which will help you lower your utility bills.
For you to obtain the tax credit for a solar water heating system, the following conditions need to be met:
-Half of the energy used by the solar water heater must come from the sun.
-The solar water heater will have to be endorsed by a government-backed party, like the Solar Rating and Certification Corporation.
-Pholtovoltaic systems must create electrical power for the household, and must satisfy fire and electrical codes.
To be able to receive the tax credit for solar energy panels, the following specifications need to be met:
-Solar power panels have to deliver electric power for the house they operate in, and must satisfy fire and electrical codes.
To learn more about setting your household up for solar powered energy, have a look at this solar powered energy guide.
2012 HVAC Tax Credits Will Put Money Back in Your Pocket
There are lots of opportunities to utilize the 2012 HVAC tax credits. By getting a system that\’s qualified to obtain the 30% tax credit, you won\’t just be getting a deduction on incredibly energy-efficient devices, but you will also be able to considerably minimize the amount of energy your house consumes. And, over time, your energy-savings will more than compensate for the cost you initially paid for the system. If you possess the funding to do so, changing your equipment is definitely something to contemplate.
If you are considering purchasing a new heating and air conditioning system, you need to check and make sure it is eligible for the 2012 HVAC tax credits.