As the clock runs out on 2016, you may be thinking of ways to boost home energy efficiency while also saving money. There are several income tax credits available for homeowners that can reduce the purchase price of new HVAC equipment.

Tax Credit Details

Federal income tax credits for energy efficiency are available for certain HVAC system and equipment upgrades, replacements, and new purchases. For qualifying purchases, the credits can be applied directly to your income taxes. The credits apply to purchases made in 2015 and 2016. The expiration date for these credits is December 31, 2016.

Ask your tax professional for specific information on limitations and applications on these credits.

Tax Credit Facts

Credits for certain HVAC systems and construction features qualify only when purchased for your principal place of residence. These credits do not apply if the equipment is purchased for a rental unit or a second home. Credits are for 10 percent of the cost of the equipment up to $500, or for a specified amount between $50 and $300.

• Air source heat pumps (both split and package systems): $300 credit.
• Central air conditioning (both split and package systems): $300 credit.
• Gas, propane, or oil furnaces and fans: $150 for furnace, $50 for advanced main air circulating fan.
• Insulation (dot not include installation): 10 percent of cost up to $500.
• Roofs (metal and asphalt roofs with coatings designed to reduce heat gain): 10 percent of cost.
• Windows and doors: 10 percent of cost up to $200 for windows and $500 for doors.
• Non-solar water heaters: $300 credit.
• Geothermal heat pumps: 30 percent credit, including installation.

State Tax Credits

You may also be eligible for certain state-level tax credits or efficiency incentives. Check the Database of State Incentives for Renewables and Efficiency (DSIRE) for Georgia for specifics.

Since the company was founded in 2001, Powers Heating and Air has been providing expert HVAC services to customers in Peachtree City and the surrounding communities. Contact us today for more information on the 2016 federal income tax credits and for a full selection of HVAC equipment that will qualify.

Our goal is to help educate our customers in Peachtree City, Georgia and surrounding areas about energy and home comfort issues (specific to HVAC systems). For more information about other HVAC topics, download our free Home Comfort Guide or call us at 770-487-2040.

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