Homeowners just have a few months to take advantage of the federal home energy tax credits for equipment and materials that will lower your utility bills. The U.S. Department of Energy reports that half of what the average family spends on energy goes toward heating and cooling, and these credits are geared toward products that will lower energy use and conditioning bills.
The most generous credits under the 25C program are those for high-efficiency heating and cooling equipment. The minimum SEER (seasonal energy efficiency ratio) rating for cooling systems stands at 13, but to qualify for the credits, the minimum starts at 14 SEER and goes as high as 16, depending on the type of A/C you’re buying.
Combustion heating equipment needs to have a minimum AFUE (annual fuel utilization efficiency) of 95 percent. AFUE ratings indicate how much of the fuel the system uses to create heat for your home instead of sending it up the chimney. A system with the current 78 AFUE minimum rating wastes 22 percent of the fuel it uses. One with a 95 AFUE wastes just 5 percent of the fuel, resulting in much lower heating bills.
Besides HVAC equipment, you can also take advantage of the home energy tax credits by upgrading the motor inside the blower to one that uses no more than 2 percent of the total energy the system uses. These high-efficiency motors, also called electronically commutated motors, use much less electricity than a standard blower motor.
Other ways to cash in on the credits include upgrading water heaters, improving insulation, and buying roofing material and doors and windows that meet the program’s requirements. You can deduct 10 percent of all these improvements, with a lifetime cap of $500. The installation costs for a new roof and insulation can’t be deducted. The maximum credit for eligible cooling systems and water heaters is $300, and $150 for heating equipment, including installation.
To learn more about using the home energy tax credits before the deadline of Dec. 31, 2013, please contact us at Ace Hardware Home Services. We’ve provided trusted HVAC services for Dayton area homeowners since 1978.
Our goal is to help educate our customers in Dayton, Ohio about energy and home comfort issues (specific to HVAC systems). For more information about tax credits and other HVAC topics, download our free Home Comfort Resource guide.
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