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Tax Credits for Energy Efficient Air Conditioning In Your
Home
The government often tries to influence our behavior through
taxes. The tax credit for new energy efficient cooling systems in our
homes is one example.
As part of the provisions in the Energy Policy Act 2005, homeowners are
entitled to claim tax credits on use of a few energy saving items. They
include the use of energy saving windows, doors, roofing, furnace and
boiler, water heater and air conditioner. As energy becomes scarcer by the
day, it is essential to conserve as much energy as possible. The
government, by way of giving tax credits, also encourages using alternate
sources of energy.
Using
energy efficient air conditioning systems is one of the items that
qualify for tax credit. Individuals who install this type of air
conditioner are eligible for a tax credit of up to $300. The models that
qualify are obviously costlier than the ordinary ones. However, this
calculation would show that it is advisable to install a new energy saving
air conditioner. Even if you save just $10 a month on average by way of
electricity bills it comes to $120 for a year. Add to that the tax credit
of $300, your net saving is $420. This amount should be good enough to
prod a homeowner into buying an energy efficient air-conditioner.
Of course, not all air conditioners are eligible for a tax credit. Even,
not all Energy Star air conditioners qualify, only some do. Very efficient
central air conditioners qualify for the tax credit if they meet the
following criteria:
1. The Energy Efficiency Ratio has to be 13.0 or higher (in some states
its 12.5).
2. Certified technician needs to install the equipment.
3. The Seasonal Energy Efficiency Ratio (SEER) has to be 15.
SEER measures performance throughout the season and EER measures
performance on a very hot day. Central Air conditioning systems must meet
the standards set by the Consortium of Energy Efficiency (CEE). The
specifications for each state vary slightly.
The tax credit for energy efficient cooling systems in our home is just
another step in saving money on both your energy bill and taxes. Since tax
credits are reduced from the actual amount of tax you owe, not your gross
income, you should strongly consider taking advantage of this one.
Richard A. Chapo is with Business Tax
Recovery - providing information on taxes.
Article Source:
http://EzineArticles.com/?expert=Richard_Chapo
If you are looking for a New York Air Conditioning contractor please call us today
at 315-463-4455 or complete our
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