Did you know there are significant savings still available to homeowners who replace their heating and air conditioning units in 2016 in the form of tax credits? Whether upgrading because you want to or because you have to, there are a lot of real benefits to making the move to an efficient, new heating and cooling system this year.
2016 TAX CREDITS
2016 federal income tax credits are available for heat pumps, central air conditioning units, and gas, propane or oil furnaces, all of which we offer at Triple-T. In addition to purchases in 2016, tax credits can also currently be applied retroactively to purchases in 2015.
Nearly 50 tax credits for energy-saving improvements were put in place several years ago that were set to expire at the end of each year on December 31st. The good news for consumers is that many of them have been renewed several times over, and there are still tax credits available, outlined on ENERGY STAR’s website, for the coming year. Among the parameters are:
– Lifetime credit of 10% of costs, up to $500 total (some individual limits apply)
– Home must be an existing home and your principal residence
– Credit is not available for new construction homes or rental properties.
– Heating and cooling system must be installed by December 31, 2016
While it may take some time to recoup the cost layout in energy savings, you’ll reap the benefits of an upgrade in the comfort level of your home immediately. Also, if you are planning on moving on, having a new system in place will discourage potential buyers from pushing for things like repairs or price credits for an older system.
Manufacturer and Utility Rebates
Often times, our manufacturers provide rebates on their products as a promotion. Likewise, local utility companies will offer rebates to incentivize customers to upgrade their equipment with newer, more efficient models. The combination of these rebates can really add up for consumers and it is our privilege to pass these savings onto our customers. Call us today to see what rebates are currently being offered, and let’s see if we can save you thousands of dollars on your next purchase.
In addition to saving with generous tax credits on new units, homeowners buying new systems also save on energy costs. It’s a fact that heating and cooling account for more than half of the energy use in the average home, so the more efficient the system, the more you’ll save each month on energy bills. According to ENERGY STAR, the U.S. Environmental Protection Agency (EPA) program, families and businesses that have upgraded have saved more than $295 billion since 2013.
It’s estimated that upgrading your HVAC system to a new energy-efficient one can save as much as 20% per year on energy costs. New systems are also more environmentally friendly as they cut down on greenhouse gas emissions.
There is no doubt that tax credits make heating and cooling system upgrades more attractive, but the credits may not be available forever so be sure to take advantage of the savings and jump on them while you still can.