Energy Efficient Air Conditioning That Earns Federal Tax Credits

The American Recovery and Reinvestment Act of 2009 increased tax credits to homeowners. This was granted to those who make energy efficient improvements to their primary residence. To be eligible for the tax credit, one must purchase a high-efficiency heating or cooling system between January 1, 2009 and December 31, 2010. The credit can be claimed for 30% of the cost up to $1500. Just like all deductions, eventually they come to an end. Individuals only have a few more months to take advantage of this federal credit and are advised to do so in order to reap the benefits.

People wanting to trim their heating and cooling bill may consider installing HVAC equipment. These include qualified heat pumps, furnaces, hot water heaters and central air conditioners. Most energy costs are reduced by 40%, providing a much cleaner environment. Not only do you receive a tax credit, but the savings continue each month with lower energy bills. In order to be eligible, ask the HVAC contractor to provide you with a Manufacturer Certification Statement.

Central air conditioning units must meet very high standards set by the Consortium for Energy Efficiency and usually require a Seasonal Energy Efficiency Ratio of 16. This is the measurement throughout a cooling season to determine the benefits for homeowners. Two-thirds of all residences now have air conditioners that use approximately 5% of all the electricity produced in the US. This is an estimated cost of $11 billion to homeowners with 100 million tons of carbon dioxide released into the atmosphere each year.

Central air conditioning units are paired with oil or gas furnaces to provide cool air through the same ducts used for heat. In order for an air conditioner to perform at its fullest potential, the furnace needs to be no older than 15 years. If a residence is heated with electricity, a heat pump system is the most efficient for moderate climates saving the average family 30% to 40%. Proper sizing and installation is the key in determining the efficiency of a central air conditioner. Units that are too small will not be able to maintain a comfortable temperature on a hot day while those that are too large will not properly remove humidity.

Features to look for when purchasing a central air conditioner with high efficiency include variable speed air handlers, quiet operation, thermal expansion valves, a fan only switch and an automatic delay switch. Central air conditioners have a lifespan of 15 to 20 years with manufacturers producing replacement parts for upkeep. Proper installation and the location of air conditioners is another important factor towards efficiency. The HVAC contractor chosen for the installation procedure should allow adequate indoor space with an access door for maintenance and repairs. There need to be several supply registers to deliver cool air and return registers for transporting warm air back to the air conditioning unit. The condensing unit needs to be in an area that will not wake the neighbors at night and not be blocked by other objects.

If you need to upgrade your heating or cooling system, do it soon. The federal tax credit is still available and it is important that everyone take advantage of this opportunity. Besides earning a $1500 deduction, you are also saving household expenses. Utility costs for the average residence without energy efficiency take up to 40% of the family's living expenses. Make your home a smart investment and save money while doing so.