Earning a tax rebate on the purchase of an energy efficient, heating and cooling system is a nice incentive. Yet, for the life of the equipment, a homeowner can expect to save much more in the form of reduced utility bills. An added benefit, is that Energy Star appliances reduce greenhouse gas emissions compared to conventional systems.
There are over fifty types of product categories that are rated by Energy Star. Look for the label shown at right on your appliance or in the manual. Not all certified products qualify for a federal tax rebate. Some central air conditioners, heat pumps, furnaces, and geothermal heat pumps do qualify. Most federal tax credits for Energy Star appliances expire December 31, 2016. Therefore, new HVAC installations could qualify for a credit and be used in 2015 or 2016 tax returns.
Don’t just look at HVAC equipment! There are many more Energy Star rated products that make a home or office more energy efficient, decrease energy consumption and work in conjunction with an efficient HVAC system. Some of these products are eligible for a tax rebate and include: water heaters, windows, doors, skylights, insulation, roofs, and wind/solar energy systems. We highly encourage you to do some homework, research qualifying products and analyze tax credit amounts on https://www.energystar.gov.
Geothermal heat pumps fall under the Energy Star label and are eligible for a federal tax credit of 30% of the total equipment and installation costs, with no upper limit. This is a substantial credit but not all homes are candidates for geothermal systems. Contact our team for an in-home consultation to determine if geothermal is a possibility.
Air source heat pumps and central air conditioners with the Energy Star label qualify for a one-time rebate of $300. Lex Air estimates that around 90% of our customers would qualify. A separate 95% AFUE gas fired furnace or boiler credit for $150 is also available, but the majority of homeowners in the DFW area have an air conditioning and heating system, not just a standalone furnace. In other words, metroplex residents will usually qualify for the $300 credit when replacing HVAC equipment as opposed to a $150 credit for a furnace or boiler.
Visit the energy star website to learn more about tax credit amounts and Energy Star requirements for specific types of air conditioning and heating equipment. Our team will always consult with you about rebates available for your equipment.
Lex Air highly recommends Energy Star rated equipment manufactured by Trane to all of our customers during new installations. Easily browse through qualifying Energy Star equipment on the Trane website.
Nevertheless, we understand that not every homeowner is in the market for Energy Star equipment. Typically, more efficient heating and cooling systems carry a higher up front cost. It’s safe to say that Energy Star rated HVAC systems cost more during installation than non-rated appliances. Lex air sells all types of systems for any budget and works on both rated and non-rated Energy Star appliances.