Federal Tax Credit For Energy Efficiency HVAC Systems

Heating, ventilation and air condition systems, (known as HVAC), is a way in which temperature is effectively controlled throughout the year. Helping to keep temperatures warm throughout the winter months and cooler during the summer, they are also increasingly popular as it helps keeps energy bills down by maximizing usage of energy resources.

Many HVAC systems are now so incredibly efficient, that it is also possible to claim tax benefits from the Federal tax credit system. As we all become more aware of the impact of our daily activities on the environment too, it is yet another step we can take to minimize our carbon footprint of course.

However, many of the older HVAC systems do not qualify for these tax credits, so for many it may be well worth upgrading, rather than seek costly repairs of existing models. Whilst initial spend may be greater of course; the savings over the lifetime of the unit will be noticeable.

It is important to understand which systems will qualify for the tax credits of course, and in turn these will also be very effective in saving bottom line costs on energy bills throughout the year.

SEER, which stands for; Seasonal Energy Efficiency Ratio, is the measure by which the efficiency a cooling system over a complete season is rated. For split systems, this rating needs to be 15 or 16 as a minimum. For package systems, this needs to be a minimum of 14 to qualify for the tax credit.

EER, standing for Energy Efficiency Ratio, is the measure given to the efficiency of cooling systems where the external temperature reaches ninety-five degrees or above. This needs to be a minimum of 13 for split, or 12 for package systems.

HSPF, or Heat Seasonal Performance Factor, measures the efficiency of a heat pump. To qualify, a minimum rating of 8 is needed.

In the cases above, the lower the figure given denotes a greater fuel efficiency rating for the system.

The biggest single efficiency rating is known as AFUE, (Annual Fuel Utilization Efficiency). All systems, whether packaged or split, or powered by any fuel type, should have a minimum rating of 90 or 95. In these cases, the higher the number the great efficiency is denoted.

To take advantage of the savings through tax credits, and bottom line spend, these are the minimum requirements. To best ascertain which systems are right for you however, it is always advisable to consult with a company specializing in HVAC systems; many of which are freely contactable online.