Energy Star HVAC Tax Credits

The American Recovery and Reinvestment Act has delivered again.  Here are five HVAC systems that will score you a tax credit this year.

President Obama’s new energy efficiency tax credits have been expanded for 2009-2010.  For example, previous per-appliance caps for HVAC systems, which kept them at $300 or less, have been removed.  HVAC is an acronym that commonly stands for Heating, Ventilation, and Air-Conditioning.  If you are considering upgrading your residential HVAC system, this is your year.

Keep in mind that not all Energy Star rated HVAC appliances are tax credit worthy.  The beauty of buying Energy Star HVAC products is that they lower your energy bills.  Even without the ARRA tax credit, an Energy Star HVAC will pay you back in a practical amount of time.  Do a bit of research about HVAC systems before you choose one.  If you want to take advantage of the tax incentive, make sure the HVAC system you install is eligible for the tax credit before you buy.

Homeowners are now eligible for up to a $1,500 tax credit for qualified home improvements.  In fact, homeowners that previously claimed credits in 2006-2007 are still eligible for the entire $1,500 limit.  The time frame for this tax credit is January 1, 2009 to December 31, 2010.  All purchases and installation must take place within this two year span to qualify for the credit.

What HVAC appliances does the Tax Credit cover?

There are five categories of HVAC appliances included in the tax credit legislation.  To qualify, you must have your equipment installed by a certified technician.  A bonus is that installation cost, not just the purchase price, is also included in the tax credit.

1. Advanced Main Air Circulating Fan.  Main air circulating fans are part of the “V” in HVAC.  It is an efficient fan or blower motor that sends hot air from your furnace through your duct system.  To qualify, the fan must use 2% or less of the furnace’s total energy.

2. Air Source Heat Pumps.  Heat pumps are an energy efficient alternative to furnaces.  Air source heat pumps are most effective in moderate climates.  Heat pumps use electricity to move heat from cooler spaces to warmer spaces, rather than generate heat.  During the heating season, warm air is brought in from outside to warm the home.  During the cooling season, warm air from inside the home is moved outside.

3. Central Air Conditioning.  Not all of central air applicances qualify for the ARRA tax incentive.  There is a lot of variety in central air conditioning units.  Ask your HVAC contractor about the types of central air that qualify for the tax credit.

4. Natural Gas, Propane, or Oil powered Hot Water Boilers.  Boilers heat water and circulate that hot water through your home.  Boiler systems use a system of baseboard heating units, radiant tubing installed in the floors, and radiators.

5. Natural Gas or Propane Furnace.  Furnaces generate heat using fuel and air combustion.  The heat is circulated through the ventilation system using an advanced main air circulating fan.  Though gas and propane furnaces qualify for the tax credit, furnaces are overall the least energy efficient.

Make sure to talk to an HVAC contractor or two before you make any final decisions.  Your best choice for an HVAC upgrade will depend on your local climate, your budget and the size of your home.  A good contractor will help you assess the size and layout of your home to optimize your HVAC renovation.

Replacement Window Tax Credit

With new energy efficiency tax credits, the time for replacement windows is now.  Here’s how to choose the right windows.

In February of 2009, the President enacted a bunch of energy tax credits as part of his American Reinvestment and Recovery Plan.  This legislation is great for the American homeowner.  Some basic remodeling will increase the energy efficiency of your home may earn you up to a 30% tax credit.  One of the easiest and most effective renovations a homeowner can perform is to install replacement windows.

Recent developments in replacement window materials and manufacture have made them more attractive energy efficient than ever.  Compared to other forms of beautification and insulation, replacement windows require little labor.  On top of the tax credit for buying them, replacement windows immediately start bringing down your heating and cooling bills.

It’s settled.  Now what?

By installing replacement windows this year you stand to gain a tax credit and immediate energy bill savings.  Only one question remains:  Where to start?  Start by considering the replacement window options available to you.  There is a lot of versatility in replacement windows.  You do not need to install a window type identical to the one you are removing.

Learn your window frames and types.

Do your homework. Have a talk with an architect or designer about the style of your home.  Ask questions about frames.  Aluminum frames are inexpensive, but insulate poorly.  Aluminum frames will need a thermal break.  Wooden frames insulate well and have an elegant look, but will cost more.  Additionally, vinyl and fiberglass frames offer the greatest insulation at the lowest cost.  Many consumers choose vinyl or fiberglass frames.

Know your six window types.  Which types are eligible for the tax credit?  Ask your supplier.  The old Energy Star rating may not be enough.  These simple steps will help you decide on the best replacement windows.

6 types of replacement windows.

1. Casement windows.  Casement windows are large panel, often crank operated, windows.  They swing open similar to a door.  They offer lots of natural light and a broad view of outside.  Casement windows can be cleaned on each side from inside your home.  If you get the right kind, they can be very energy efficient.

2. Awning windows.  Awning windows are hinged windows, similar to casement windows.  But they do not open from the side like a door.  Awning windows swing open outward from the top.  These are the one of the oldest type of window still in use.  They are great for letting in fresh air during any weather.  They open like an awning, so even rainwater is kept out while fresh air comes in.

3. Double Hung windows.  Probably the most popular windows, double hung windows contain two vertical sashes.  These sashes slide up and down along independent grooves.  You can open the top half or the bottom half of double hung windows.  Because of the popularity and effectiveness of double hung windows, they are available in just about any size or color.  Typical double hung windows are a very common shape and size.  This means new double hungs will often fit into your existing window frames, if they are in good condition.  Another cost saver on installation.

4. Gliding windows.  Gliding windows are also known as horizontal slider windows.  These are the types of windows associated with sliding patio doors.  Gliding windows can also be used nicely in bedroom and living rooms.  They are similar to double hung windows, but they open from the left or right, rather than the top of bottom.

5. Picture and Transom windows.  These are accent windows.  Picture and transom windows are stationary windows that do not open.  They are found over doorways or other larger opening windows, like double hungs.  Picture and transom windows increase and brighten your view of the outdoors, without any moving hardware.

6. Bow and Bay windows.  Bow and bay windows create more interior space, quickly making a room bigger and brighter.  They are installed in groups from three to six windows.  Bow and bay windows sweep in an attractive arch away from the room.  Casement and double hung windows are the most common components of bow or bay windows.  Bay windows often have a bench installed along the bottom so you can sit and admire the view outside.  They are an excellent way to beautify and expand a room.

Now that you are armed with information, cash in on the energy efficiency tax credit this year.  Get those drafty old windows out of your lovely home.  Do yourself and your home a favor by installing replacement windows.  Remember, the credit is only allowable for windows purchased and installed during 2009 and 2010.  For information about home improvement and the new tax credits, visit http://www.buildingcompanynumber7.com