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Incentives, tax credits and rebates are available on qualifying high efficiency heating and cooling equipment. The Federal Stimulus bill, the Energy Trust of Oregon, the Oregon Department of Energy and your local utility may have programs you can take advantage of.
Purchasing a new comfort system is a major expenditure and you want to make a wise decision. Before you decide, make sure you know:
Total costs including installation, electrical work, duct work, recycling old equipment, etc. No surprises.
Know what tax breaks and rebates you are eligible for.
Know what financing options you have.
Tax credits and rebates change from time to time. Check with your Western Heating Comfort Consultant for current information. Only your tax accountant can say for sure which program will benefit you. All programs are administered by the offering agency, not Western Heating.
Jan 4 through April 30, 2010
Purchase a new furnace & a natural gas water heater or tankless water heater receive an additional $100 applied to your NW Natural account for a 92% gas furnace; $150 for a gas furnace and 62% EF tank water heater; or $250 for a gas furnace and a tankless water heater.
Please check with your tax adviser on eligibility on all rebates and tax credits.
Ductless Heat Pump: $50 / 6,000 Btuh up to 25% of the equipment cost or $400 / residence.
Tankless Water Heater: $340.00; 0.80 AFUE or greater.
Federal Stimulus Tax Credits for 2011
The American Recovery and Revitalization Act of 2009 provides homeowners a tax incentive to make improvements to the overall energy efficiency of their homes, including their HVAC systems, windows and doors.
This plan provides non-refundable federal income tax credits against tax owed for qualifying, high efficiency systems placed in service starting January 1, 2011 through December 31, 2011. The taxcredit is 10% of the installed cost, up to $300 except for geo-thermal heat pumps which earn a 30% tax credit with no cap.
Federal Stimulus Qualifying Equipment
Natural or L.P. Gas Furnaces with an AFUE rating of 95% or higherequipped with an “Advanced Main Circulating Fan”
Split Heat pumps with efficiency ratings of 15 SEER, 12.5 EER & 8.5 HSPF or higher.
Packaged heat pumps with efficiency ratings of 14 SEER, 12 EER & 8.0 HSPF or higher.
Packaged Air Conditioners with energy efficiency ratings of 14 SEER & 12 EER.
Natural, L.P. or oil hot water heaters with an energy factor rating of .82 or 90% thermal efficiency and higher.
For GEOTHERMAL SYSTEMS, the tax credit is 30% of the installed cost with no limit.
Federal Tax Credit FAQs
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1.)Does the qualifying dollar amount include the installation costs? For HVAC equipment, the law defines the installation costs as "expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property." In other words, YES!
2.)How do I apply for the credit? Western Heating will provide you with a manufacturer’s certification form after your qualifying equipment is installed. You will then need to file IRS Form 5695 with your tax return.
3.)Why do only specific types of equipment qualify? The purpose of the plan is to encourage homeowners to install the most efficient equipment available. With current discounts, promotions and manufacturer’s rebates coupled with the tax credit, it is possible to realize a savings of up to $1,400 for these high efficiency systems. This would be in addition to lower utilities, as well. Geothermal heat pump purchasers could see even greater savings (30% tax credit with NO LIMIT).
4.) How does the Advanced Main Circulating Fan credit work? There is no consensus or documentation to definitely determine how the tax credit for advanced main circulating fans will be handled. Until clarification from the IRS is obtained, which is not expected for some time, we advise that customers installing furnaces that would otherwise not qualify except for the advanced fan feature, refer to their tax professionals before applying for this tax credit.
The federal tax credit is a "credit against tax" and "may not exceed the regular tax liability".
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