You’ve probably heard many arguments for why you should purchase an energy efficient air conditioner. They may cost a bit more up front, but they’ll save you money in the long run by cutting down on your monthly energy bills. They’re also better for the environment because their lower energy usage means less fossil fuels are burned to keep them running.
But there’s another reason energy efficient AC units are better buys than your standard alternative. There are Federal tax credits available to consumers who purchase them. This tax credit can more than make up for the higher purchase price of the units, allowing you to enjoy your monthly savings much sooner and know you’re doing your part to protect the environment.
How to Qualify
In order to qualify for 2011 air conditioning Federal tax credit, you need to purchase an appropriate energy efficient AC system. Your HVAC contractor or salesperson can tell you which models and units qualify for this program. Just make sure you save all documentation and proof of purchase in case you need them to validate your claim.
The AC units that qualify you for this tax credit include those with a SEER (seasonal energy efficiency ratio) of 16 or greater and an EER (energy efficiency ratio) of at least 13. These two numbers are the best and clearest indicators of the overall energy efficiency of the product and can easily be found on the packaging for any air conditioning unit. While a 16 SEER is very good, it is not the highest rating currently available, either, so you won’t be forced to buy the most expensive model available to get your credit.
The tax credit is good for up to 10% of the purchase price of the unit up to $300. Keep in mind, though, that you can only claim up to $500 lifetime towards this program. So if you’ve previously claimed $250, you can only claim an additional $250 for 2011. That’s still a significant savings, though, and well worth looking into if you’re in the market for a new AC unit or system.
So if you’ve been thinking about upgrading your AC system, but haven’t quiet gotten around to, now may be the time to take advantage of this great tax credit opportunity before it’s too late.