The U.S. Environmental Protection Agency’s (EPA’s) Energy Star program encourages homeowners like you to use energy saving equipment for heating, ventilation, and air conditioning (HVAC). Such equipment saves energy resources because it is highly efficient. Therefore, you should look for the Energy Star label on HVAC units when deciding on upgrades to your present home systems.
Combining efforts with the EPA, Congress passed the American Recovery and Reinvestment Act of 2009 (ARRA). This law gives you a credit on your income tax return for installing certain Energy Star equipment in your home. Recently, the law was extended to include equipment installed this year.
Therefore, when you file your return for income and HVAC upgrades made in 2011, you will be eligible for a tax credit equal to a percentage of what you spend on qualifying high-efficiency units, or a flat amount for certain specified, energy saving equipment.
In extending the ARRA to cover upgrades made in 2011, the government specifically noted that many energy saving units bearing the Energy Star label pay for themselves even without a tax credit in a short amount of time after installation, due to the savings you would experience on your utility bills by using ultra-efficient HVAC systems.
You should ask an established HVAC company about the tax credits, and also certain state and local rebates that apply to reward you for installing energy saving systems in your home.
If you do choose to take advantage of these incentives, your HVAC contractor can provide you with the proper documentation and certificates necessary to claim the rebates and tax credits.
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, click here to download our free Home Comfort Resource guide.
Home Comfort services the Mishawaka/South Bend areas of Indiana. To get started, check out our website or see our special offers