Tax Credits For New HVAC Systems

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Taxes and Rebates For New HVAC SystemsLet’s talk taxes. No, don’t run away yet. We’re going to talk about tax credits and rebates on a new HVAC system. When you purchase a new HVAC system, if it meets certain energy efficiency ratings set by the federal government, state government, manufacturers, local government, and utility providers, you could be eligible for a rebate or credit. How much this is and how often you can claim it is a rather large subject so we’ll focus on the most relevant info, the manufacturer credits. Equipment manufacturers such as Daikin derive their tax credit guidelines directly from the federal government.

Qualifications And Restrictions For Tax Credits Or Rebates

The first thing that you should be aware of is that there are restrictions on receiving the credits and some restrictions. The HVAC tax credits can only be claimed on an existing home that is your primary residence. Rental properties, vacation homes, and new construction do not qualify for the credits. There was also a lifetime cap on the amount of tax credits you can receive at five hundred dollars.

The maximum amount that the homeowner can receive in credits is 10% of the total costs of the improvements, including installation costs, up to five hundred dollars. So if you’ve already purchased equipment before and claimed a credit on it, the amount that you can earn on the new equipment is reduced by the amount already claimed of that five hundred.

The next thing is that you can’t claim the credits on all new HVAC equipment but only the ones that meet certain energy star SEER, EER, and possibly HSPF ratings. Those acronyms stand for Seasonal Energy Efficiency Ratio, Energy Efficiency Ratio, and Heating Seasonal Performance Factor.

Ratings Which Energy Star Classifies Equipment

• For a split system, the energy ratings are 16 SEER and 13 EER.
• For a package system, or package unit, the ratings are 14 SEER and 12 EER.
• For a split system heat pump the ratings are Split-System Heat Pumps 15 SEER, 12.5 EER, and 8.5 HSPF.
• For packaged, or package unit heat pumps the ratings are 14 SEER, 12 EER, and 8 HSPF.
• For packaged gas and electric units the ratings are 14 SEER and 12 EER.

For all of the Daikin systems with these ratings you can claim three hundred dollars. There are also credits for advanced main air circulating fans, which is a specialized fan that makes your furnace more efficient, and natural gas, propane, or oil burning furnaces or boilers. The amount of credits you can claim on those are less than the heat pumps and air conditioning, but in Arizona we don’t have to worry about those so much.

Save One, Save All, Savings All Around

Daikin has a number of highly efficient options to choose from when you’re shopping for a new HVAC or heating system. When you purchase a new Daikin air conditioning system, which are highly efficient, you can easily claim these tax credits. If you want to discuss your options in new, highly efficient, Daikin HVAC systems, see what system is best for you, and the rebates or credits you can qualify for today.

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