A Quick Look At The Hvac Tax Credits And Rebates By Energy Star

Tax is one of inauspicious words in almost every earner’s dictionary No one wants to hear of them except for getting credits on them. If you get them by upgrading you heating and cooling solution then what can be better than that? Here are some tax credits and rebates from EnergyStar® that you can receive in 2016. Let’s take a look:

Air source heat pump

If you looking for an air source heat pump then you can earn up to $300 in HVAC tax credits and rebates. Your system should qualify the following criteria. If it split system, it should have

• HSPF >= 8.5
• EER >= 12.5
• SEER >= 15

If its package system, It should have

• HSPF >= 8
• EER >= 12
• SEER >= 14

Central air

If you are shopping for a central air conditioning, you can bag up to $300 in HVAC tax credits. In that case the system should meet following criteria-

For a split system:

• EER >= 13
• SEER >= 16

For a package System:

• EER >= 12
• SEER >= 14


There are attractive rebates on gas, propane, or oil furnaces and fans. Buy a qualified furnace to get up to $150 in tax credits and rebates.

• For furnaces, the AFUE ≥ 95

• For fans, the annual electricity use ≤ 2% of total furnace energy

Water heaters (non-solar)

Buying non-solar water heaters can earn you up to $300 in tax credits and rebates. The criteria are:

• An electric water heater should have an energy factor ≥ 2.0

• Heaters running on gas, oil, or propane should have an energy factor ≥ 0.82 or Thermal efficiency of at least 90%

Geothermal heat pump

You are entitles to get 30 % tax credit with no upper limit for buying and installing new heat pump. However you have to meet the following criteria to qualify for this-

• The heat pump uses the ground underneath the earth surface or a body of water as sources for harnessing heat to warm the house. It also uses them as the energy sink to cool the dwelling.

• It abides by all the requirements of the Energy Star program which are in effect at the time the equipment is installed.

• Labor costs that are incurred on account of installation of geothermal heat pump and costs of any associated materials (piping, wiring, etc.) are included in the tax credit. The residence does not have to be the primary residence.

• However you should note that installing or modifying ductwork will not be included in this.

The criteria of various types of ground source heat pumps to be eligible for tax credit are as follows:

Water-to-Air – Closed Loop:

• EER >= 17.1
• COP >= 3.6

Water-to-Air – Open Loop:

• EER >= 21.1
• COP >= 4.1

Water-to-Water – Closed Loop:

• EER >= 16.1
• COP >= 3.1

Water-to-Water – Open Loop:

• EER >= 20.1
• COP >= 3.5

Direct Expansion:

• EER >= 16
• COP >= 3.6

Solar Energy Systems

Sola water heaters will earn you tax credit of 30% of cost (no upper limits apply). The criteria for this are at least half the energy that is being generated for the house should come from the sun. The solar power unit should be certified by the SRCC (Solar Rating and Certification Corporation) or a government-endorsed entity. The photovoltaic cells present in the system should meet applicable fire and electrical code requirements.

These credits are not available for heaters to warm up swimming pools or hot tubs. You will be eligible for the tax credits only if water from the heater is used in the home. These credits apply for existing homes and new construction that are principle residences or second homes. Rental properties are excluded from it. .

Here are the full forms of the acronyms listed above-

• HSPF – Heating Seasonal Performance Factor
• SEER – Seasonal Energy Efficiency Ratio
• COP – Coefficient of Performance
• EER – Energy Efficient Ratio

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