Tax credits for energy-efficient HVAC appliances were enacted by Congress in the late 1970s. Their focus was to help reduce Americans’ reliance on foreign oil and other polluting forms of energy generation and encourage the use of clean forms of energy.
It seemed like tax credits would end in 2011, but they were renewed for 2013 and retroactively for 2012. If you want a high-efficiency HVAC appliance in 2013, or you bought one in 2012, you may be able to get a credit. For HVAC appliances to qualify, they must have high energy ratings as described by the Energy Star program.
Central air conditioners that fight record highs during Colorado summers qualify for a $300 tax credit if they meet the energy efficiency ratio (EER) and seasonal energy efficiency ratio (SEER) criteria. Both EER and SEER measure how much electricity an A/C unit uses versus how much it cools. Split A/C systems must be rated at least a 16 SEER and a 13 EER, while packaged units must be at least a 14 SEER and a 12 EER to qualify for the tax credits.
Furnaces and boilers for heating during the cold winters can also receive $150 in tax credits. Gas, oil and propane furnaces and boilers must meet annual fuel utilization efficiency (AFUE) ratings to qualify. The AFUE rating measures how much heat stays inside versus how much is vented. Furnaces and boilers must have an AFUE rating of 95 percent or higher to qualify.
Heat pumps, which work like an A/C unit and a heater or in combination with another heat source, can also qualify for $300 in tax credits for Denver and Colorado Springs homeowners. Heat pumps use EER and SEER, but they also use heating seasonal performance factor (HSPF) ratings to show their heating efficiency. Split system pumps need at least a 12.5 EER, a 15 SEER and an 8.5 HSPF, and packaged systems need a 12 EER, a 14 SEER and an 8 HSPF or higher.
For more information on tax credits on high-efficiency appliances and your other home comfort needs, contact us at the Rheem Pro Partner. We’ve been serving the Colorado area since 1992.
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