What Kinds of Tax Benefits Are Available with HVAC Product Upgrades?
The product upgrade benefits of a new HVAC system go beyond your monthly utility bills.
We’re all looking for product upgrade benefits when we invest in a new product or technology, and this is especially true when it’s something substantial for our home like an HVAC system. When there are financial benefits to buying a new and more energy efficient unit it can be pretty motivational, right? Here’s what you need to know about energy efficiency and those tax credits you could qualify for this year.
How Is Energy Efficiency Measured?
Energy efficiency ratings are different for different home appliances, but they all break down to the ratio between energy usage and output or capacity.
A home air conditioner is rated using SEER, or Seasonal Energy Efficiency Ratio. With a higher SEER rating comes greater energy efficiency. The minimum SEER rating is 14 while high-efficiency units will be above 20.
Home heating systems are rated using AFUE, or Annual Fuel Utilization Efficiency standard. The minimum is 78% efficient with high-efficiency units rating up above 90% and some near 100% efficient.
What Are the Tax Benefits of Energy Efficiency?
Tax benefits for upgrading to an energy efficient HVAC system were set to expire at the end of 2014 but were extended, so you have until the end of 2016 to take advantage of the tax credits.
For central air conditioning, heat pumps, and natural gas or propane furnaces, you can expect a tax credit of 10% of the cost or your HVAC system, up to $500. That’s a pretty good deal just for having a new HVAC system that will keep your house more comfortable more consistently and that will save you money on your utility bills every month.
If you’re on the fence about investing in a more energy efficient HVAC system, take a look at the benefits, including the potential tax credits, to see why it’s a great time to make a change. For all the information you need on HVAC product upgrade benefits, contact the nearest McCall’s Supply to you.