Find Out If You Qualify for These HVAC Tax Credits and Rebates

Published on April 12, 2016

It’s April! It’s spring! It’s…tax season?!

Taxes aren’t top of everyone’s fun list, but what if you’re getting some dollars back? Service Experts Heating & Air Conditioning is outlining the HVAC tax credits and rebates from EnergyStar® that you can earn in 2016 if you choose to upgrade your home and make it more energy-efficient with one of these standard systems.

Air Source Heat Pumps

Earn up to $300 in HVAC tax credits and rebates with a qualified air source heat pump. Qualifications are below:

Requirements for split system:
HSPF >= 8.5
EER >= 12.5
SEER >= 15
Requirements for package system:
HSPF >= 8
EER >= 12

SEER >= 14

Central Air Conditioning (CAC)

Investing in a qualified central air conditioning system can also earn you $300 in HVAC tax credits and rebates. See below to see if your system qualifies:

Qualifications for split system:
EER >= 13
SEER >= 16
Qualifications for package system:
EER >= 12
SEER >= 14

Gas, Propane, or Oil Furnaces and Fans

For approved gas and/or oil furnaces, you can earn up to $150 in tax credits and rebates for the furnaces or $50 in tax credits and rebates for advanced main air circulating fans. The requirements for the HVAC tax credits are below:

Qualifications for furnaces:
AFUE ≥ 95
Qualifications for fans:
Annual electricity use ≤ 2% of total furnace energy

Water Heaters (non-solar)

Qualified non-solar water heaters can earn you up to $300 in HVAC tax credits and rebates. For requirements, see below:

If you choose an electric heat pump:
Energy factor ≥ 2.0
Requirements for gas, oil, or propane :
Energy factor ≥ 0.82 or Thermal efficiency of at least 90%

Geothermal Heat Pumps

If you decide to go the geothermal heating path and choose a geothermal heat pump, which is more efficient since they use the earth’s natural heat, you can earn 30% of cost (no upper limits apply) back in HVAC tax credits and rebates. Due to the variety of geothermal heat pumps, the requirements are provided below:

Water-to-Air – Closed Loop:
EER >= 17.1
COP >= 3.6
Water-to-Air – Open Loop:
EER >= 21.1
COP >= 4.1
Water-to-Water – Closed Loop:
EER >= 16.1
COP >= 3.1
Water-to-Water – Open Loop:
EER >= 20.1
COP >= 3.5
Direct Expansion:
EER >= 16
COP >= 3.6

Solar Energy Systems

If you want to buy a solar water heater, you can also earn 30% of cost (no upper limits apply) back in HVAC tax credits and rebates. The requirements for this tax credit, as stated by Energy Star, confirm that at least 50% of the energy generated by the qualifying property must come from the sun. The system must be certified by the SRCC (Solar Rating and Certification Corporation) or a comparable entity endorsed by the government of the state in which the property is installed. Furthermore, photovoltaic systems must provide electricity for the residence and must meet applicable fire and electrical code requirements.

Note that the HVAC tax credit and rebates do not cover swimming pools or hot tubs. Energy Star is clear that to be eligible for the tax credits, the water must be used in the home.

Keep in mind these HVAC tax credits and rebates only apply to existing homes and new construction that are principle residences or second homes. Rental properties are excluded from these credits and rebates. We’ve also provided definitions below:

HSPF – Heating Seasonal Performance Factor
SEER – Seasonal Energy Efficiency Ratio
COP – Coefficient of Performance
EER – Energy Efficient Ratio

Okay, that was a TON of information. For additional information, visit EnergyStar’s website or visit the U.S. Department of Energy page for tax credits, rebates, and savings. If you choose to upgrade your home this year, Service Experts Heating & Air Conditioning will gladly walk you through the options and choose the best heating and cooling system for your home. Call now for your no-charge in-home Home Comfort Analysis.

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