Tax Credits for High-Efficiency A/C Are Still Available

If you have an inefficient or failing central cooling system, replacing it this year could put some money in your pocket. Federal tax credits are available for homeowners who install high-efficiency cooling systems through the end of 2013, and if you did so in 2012, you can also claim the credit. The program falls under 25C of federal tax code and lets you deduct 10 percent of the cost of a qualified system, with a cap of $300. 

The systems must have a minimum SEER (seasonal energy efficiency ratio) from 14 to 16, depending on the type you choose. The minimum for all central systems stands at 13, and each numeric increase in the SEER improves efficiency by 10 percent. If you’re replacing an older system whose efficiency is 10 SEER or less, you will cut summertime cooling bills significanTax Credits for High-Efficiency A/C Are Still Availabletly.

How much those bills fall depends on a host of variables, from the age and efficiency of the system you’re replacing, and the efficiency of the new one you install to take advantage of the tax credits. When you work with the HVAC contractor to choose the new equipment, insist on a load calculation that takes into account your home’s size and layout, energy efficiency, the amount of heat you generate indoors and other factors.

The load calculation requires computer software called Manual J, which helps determine the capacity of the equipment your home needs. The companion software, Manual D, recommends the ductwork size and configuration, another variable that affects the performance of your system.

As you and the contractor fine-tune your decisions, he or she should use Manual S to verify that the cooling system you select will handle the humidity in our climate, something that affects your comfort and your home’s health. Equipment that’s too large won’t remove enough humidity, and not all systems remove humidity equally, which Manual S will reveal.

If you’re considering replacing or upgrading your equipment, the federal tax credits will help offset the cost. To learn more, contact Geisel Heating, Air Conditioning & Plumbing. We’ve provided award-winning HVAC services for greater Cleveland homeowners for more than 78 years.

Our goal is to help educate our customers in Cleveland, Ohio about energy and home comfort issues (specific to HVAC systems).  For more information about tax credits and other HVAC topics, download our free Home Comfort Resource guide.

For those Do it Yourselfers who would rather take control of your own indoor comfort, you can shop our online store for replacement parts, products and accessories!

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