Changes in Home Efficiency Tax Credits for AC and Heating Equipment

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There are a few updates to Tax Credits and Incentives in 2015.  The reinstated 2012 HVAC tax credits (25C) for certain equipment is now expired as of 12/31/2014.

However, there are a few new incentives that homeowners should be aware of.

“Residential Renewable Energy Tax Credit”:

This is a tax incentive program provided through Energy Star for residential renewable technologies.  A taxpayer may claim a credit of 30% on qualified expenditures for a system that serves as a dwelling unit owned and used as a residence by the taxpayer.

  • Eligible Renewable Technologies: Solar Water heat, Geothermal Heat Pumps, Other Solar-Electric Technologies
  • Amount: 30%

“Residential Energy Conservation Subsidy Exclusion (Personal):

This is a tax exemption program for residential solar-thermal projects and photovoltaic systems that may be non-taxable; however, the IRS has yet to rule definitively on this issue.  The IRS also has yet to release the eligible efficiency technologies for this program.

  • Eligible Renewable Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics.
  • Incentive Type: Personal Exemption
  • Amount: 100% Subsidy

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3 thoughts on “Changes in Home Efficiency Tax Credits for AC and Heating Equipment

  1. how do I get info for a new addition of about 700 sq ft in the syracuse, NY area to be sure the system will handle -20 temperatures, modern good insulation, etc. I now live in Pa and had such system when I lived in Florida.. don’t refer me to any dealer

    • Hi,
      There is no easy answer to your question. There are several considerations that go into a system selection, like the age and type of the existing system, the heat and cooling load depending on the insulations, number of windows, the layout of the additional and its exposure to sun and wind and the type of insulation etc. For this reason, you should seek professional opinion from HVAC contractors. We suggest that you always talk to more than one contractor, ideally get quotes from at least three good contractors.
      Since you mentioned it was an addition it might not have ducting for central AC in which case ductless may be an option. There are some ductless manufacturers that have models especially capable to low ambient heating. So you might have to ask for that when you get the quotes. We have seen ductless used in room additions and extensions but you should also be aware of the tradeoffs between ductless and central air conditioning. There are some useful articles in this blog to get you started. Search for mini-splits. Good luck

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