Homeowners who purchase energy-efficient HVAC equipment can offset their investment with federal tax credits. However, these credits are set to expire on Dec. 31, 2011. To take advantage of this money-saving opportunity, you must upgrade your HVAC equipment before the end of the year.
Tax credits are currently available for new air conditioners, heat pumps and furnaces. If you purchase a qualifying central air conditioner, you may be eligible for a tax credit of up to $300. If you purchase a qualifying heat pump, you can receive a tax credit of up to $300. Finally, a qualifying furnace may earn you a tax credit of up to $150.
A tax credit is different from a tax deduction. Rather than deducting money from your taxable income, a tax credit deducts money from your tax bill itself. Not only that, but installing a more energy-efficient air conditioner, furnace or heat pump will also lower the cost of your future energy bills.
There is a $500 lifetime limit for all energy-efficiency tax credits. To qualify for these credits, the installation must take place in an existing home that you use as your primary residence. In most cases, you can claim a credit equal to 10 percent of the cost of the improvement as long as the total credit is less than, or equal to, IRS maximums.
Time is running out on this opportunity, so act quickly. Contact Smoky Mountain Heating & Air to learn more about the units that qualify for these tax credits, and the cost of installation.
Our goal is to help educate our customers 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.
Smoky Mountain Heating & Air services Asheville, North Carolina and the surrounding areas. Visit our website to see our special offers and get started today!