Tip & How-To about Heating & Cooling

Tax Incentives for Heating and Air Conditioning

The passage of the American Recovery and Reinvestment Act of 2009, consumers are able upgrade to more energy-efficient heating and air conditioning equipment. They can start saving on energy bills right away, and you may also save on your taxes next year. For your home, these benefits can include lowering home energy bills, increasing your indoor comfort, and reducing air pollution. These programs are helping savvy consumers’ lower energy bills in their home. The energy-efficient products that are eligible for the new federal tax credits can lower the amount of federal income taxes that many taxpayers must pay Uncle Sam.

There are some new potentially lucrative tax incentives for energy-efficient and renewable-energy home improvements. These may offer some consolation to many homeowners who feel they are getting forgotten with the government's various economic stimulus efforts.

There is a $1,500 energy-efficient credit, which currently will last only last two years, meaning consumers will have to find a way to spend this money during this economic downturn. Homeowners now have a new opportunity to lower their energy costs and save on their 2009 federal income taxes by making specific energy efficiency upgrades to their homes.

There is also a new tax credit that will be effective 2009 through 2016 for 30 percent of the cost of a qualified geothermal heat pump. This can be for up to $2,000. These caps do not apply to certain alternative energy systems like geothermal heat pumps, solar water heaters, wind power, or photovoltaic systems. The benefits for installing some pricier solar technology, small wind-energy systems or geothermal-well systems can include a tax credit of 30% for qualifying expenditures with no upper limit through 2016. In order for you to claim your credit, the energy efficient improvements you must use qualifying Energy Star rated products and they must be started up sometime between from January 1, 2009 through December 31, 2010.

By doing your research and talking with your heating and air conditioning professional you may be able to save a substantial amount of money and get some great home improvements at the same time.

Posted by on

Heating & Cooling Logo

Related Topics:

Related Questions:

1 Answer

I have a RUDD UPNE-042JAZ. How many tons is that?


That is a 3.5 ton heat pump at 13 SEER.
A S.E.E.R. (Seasonal Energy Efficiency Rating) is the rating and performance standards that have been developed by the U.S. government and equipment manufacturer's to produce an energy consumption rating that is easy to understand by consumers. It has a universal formula and conditioning that can be applied to all units and compensates for varying weather conditions.

Basically, the lower the S.E.E.R. rating, the more energy (electricity) is required to produce the desired effect.

Jun 13, 2011 | Heating & Cooling

1 Answer

We are an Ace Hardware Store and we sold a water heater to a customer, and the sticker on the outside of the box that had the information for energy was discarded by us and now the customer wants the information. How can we get a copy of it faxed to us? It was a 55 gal electric water heater MFG# 6-50-DORT, serial #1023A000954.


Dort is Reliance.
http://www.reliancewaterheaters.com/prod/elec.html
6-50 Dort is 606 series

Your Customer wants energy factor.
Pdf below shows energy factor for 606 series:
http://www.reliancewaterheaters.com/lit/spec/electric/R606E0510.pdf
55 gallon has .90 energy factor.

4500 watt water heater costs about $48 per month with electric prices at 12 cents per Kwh
http://waterheatertimer.org/Figure-Volts-Amps-Watts-for-water-heater.html

Read about energy factor:
http://www.energysavers.gov/your_home/water_heating/index.cfm/mytopic=13000
"...energy efficiency based on the amount of hot water produced per unit of fuel consumed over a typical day. This includes the following:
  • Recovery efficiency - how efficiently the heat from the energy source is transferred to the water
  • Standby losses - the percentage of heat loss per hour from the stored water compared to the heat content of the water (water heaters with storage tanks)
  • Cycling losses - the loss of heat as the water circulates through a water heater tank, and/or inlet and outlet pipes." end quote
Energy factors exist so large appliances can be compared to small appliances.
-This is like comparing aircraft-carriers to small ships.
-The purpose is so large gigantic appliances look like reasonable energy alternatives, when that is not actually true.
-The aircraft carrier could have better efficiency number than smaller ship, and it gives misleading appearance that aircraft-carrier will save the consumer money. Many of the super high-consumption 80 gallon water heaters have higher energy factor, but they consume huge amounts of energy each time operated. Simple Dort series is a better value even with lower efficiency number.
-The efficiency number is only for a new product. There is no measure showing how long that product will maintain the efficiency rating.
-And lastly, the manufacturer is putting energy factor on the product, like writing your own performance review, so who can possibly double-check the energy factor.

Dec 29, 2010 | Reliance Water Heaters

Not finding what you are looking for?

887 people viewed this tip

Ask a Question

Usually answered in minutes!

Top Heating & Cooling Experts

paulcarew

Level 3 Expert

2514 Answers

Dan Webster
Dan Webster

Level 3 Expert

8220 Answers

Donni Steen

Level 3 Expert

659 Answers

Are you a Heating and Cooling Expert? Answer questions, earn points and help others

Answer questions

Loading...