Tax Day 2017 will be here sooner than you think. Tuesday, April 18, 2017, is the deadline for filing 2016 IRS tax returns.
Not only can upgrading to a high-efficiency HVAC equipment cut energy costs by roughly 20 percent—or $200—annually. The purchase and installation of certain HVAC systems can also make you eligible for tax energy credits. With a tax credit, you get matched dollar per dollar on reductions in your tax liability. So, for example, if you receive the $500 tax credit, you pay $500 less in taxes.
While the cost to upgrade to high-efficiency central air conditioning system may be larger upfront—ranging from around $3,500 to $7,000—the investment will quickly and consistently pay for itself in terms of reduced energy consumption and expenses.
The Basics of AC Installation and Tax Credits
- Use this helpful resource from the Air-Conditioning, Heating, and Refrigeration Institute to determine and verify if the system you plan to purchase or have already installed qualifies. Make sure to click “Yes” in the “Eligible for Tax Credit” box and provide as many other specifics as possible (i.e., manufacturer name, model number).
- Not all Energy Star products will qualify for a tax credit. Here are the key product criteria for Air-Source Heat Pumps and Central Air Conditioners.
- There is a $500 tax credit ceiling. The lifetime credit is a maximum of up to 10 percent of costs—up to $500—for all energy improvements together.
- File IRS Form 5695 with your returns. Pay attention to details.
- Your eligible HVAC system must have been installed by December 31, 2016.
Central Air Conditioning Tax Credit Requirements
Split Systems
SEER >= 16
EER >= 13
Package Systems
SEER >= 14
EER >= 12
Call Blair’s Air for High-Efficiency HVAC Installation
If you are on the market for a new, high-efficiency heating and central air conditioning system, Blair’s Air Conditioning and Heating is here to help. Our team of expert technicians will be with you every step of the way—from planning and purchasing, to design, system installation and ongoing repairs and maintenance. Having the most efficient HVAC system won’t matter much if you disregard routine maintenance.
Contact the cooling crew at Blair’s Air today by calling us or scheduling service online. We are committed to keeping your Clearwater, St. Petersburg or Tampa Bay office or residence as comfortable and efficient as possible throughout spring and summer.
Call (727) 800-4148 to schedule your appointment.
