IRS reports a tax credit available for new Heating & Cooling Equipment in 2006!
What is the tax credit? Purchasers of highly efficient heating, cooling and water heating equipment can take tax credits of up to $300 for purchasing quilifying equipment. These credits areavailable for systems placed in service from January 1, 2006 to December 31, 2007. There is a 500 cap on the credit per home, including the amount received for insulation, windows, air and duct sealing. WHAT TYPES OF EQUIPMENT QUALIFY AND FOR HOW MUCH? 1) High-efficiency gas, oil and propane furnaces and boilers: $150, 2) High-efficiency central air conditioning units, including air-source and ground-source heat pumps: $300, 3) High efficiency fans for heating and colling systems: $50, 4) High-efficiency water heaters, including heat pump water heater: $300. What are the efficiency requirements to qualify for the credits? Manufacturers and retailers should be able to help you tell whether a specific product qualifies. The basic qualification specifications are: 1) Furnaces and boilers should have an Annual Fuel Use Efficiency (AFUE) of 95 or high. Central air conditioning units must meet the highest tier standards set by the Consortium for Energy Efficiency (CEE). These will require a Seasonal Energy Efficiency Ratio (SEER) of 15 and Energy Efficiency Ratio (EER) of 12.5 or 13. Air-source heat pumps must have a Heating Seasonal Performance (HSPF) of 9 or greater, SEER of 15 or higher and EER of 13 or higher. Ground-source heat pumps must meet the Energy Star criteria of 14.1 cooling EER and 3.3 (COP) for a closed loop system. Fans for heating and cooling systems need to use no more than 2% of the total heating system energy use as defined by DOE test procedure. Gas and propane water heaters have at least a 0.8 Energy Factor. Heat pump water heaters with an Energy Factor of at least 2.0 also meet the requirement. What do you need to do to qualify for the incentives? Details will be spelled out in the IRS rules and forms. However; this information has not been published to date. At the minimum, taxpayers will need in information on when the quipment was placed in service and information on the efficiency of the equipment in order to confirm that the equipment meets the qualification criteria. |
Washington Electric Cooperative encourages members to consider high efficiency heat pumps and geothermal systems to improve your home's heating and cooling efficiency.
Rebates are available for Dual Fuel (gas or propane furnace with a heat pump) and geothermal systems of $600 and $700 respectively. |
Tax Credits for homeowners (U.S. Department of Energy)
The homeowner credit for all improvements combined cannot exceed $500 during the two year period of January 1, 2006 to December 31, 2007.
Elligible measures are: added insulation to walls, ceilings and other pasts of the building envelope; replacement windows; high-efficiency gas, oil and propane furnaces and boilers; high-efficiency central air conditioning units, including air-osource heat pumps; high efficiency fans for heating and cooling systems; and high-efficiency water heaters, including heat pump water heaters.
Incentive amounts are: 1) added insulation of 10% of the cost up to $500, 2) Replacement windows of 10% of the cost up to $200, 3) furnace an boliers with $150 maximum for qualifying units, 4) Fans and cooling systems with $50 maximum for qualifying units and 5) water heaters with $300 maximum for qualifying units. A final interpretation for IRS use is not available at this time. A draft summary with the lastest information from the Energy Policy Act of 2005 is available from the Cooperative office. Call 877-594-9324 or email kjschilling@weci.org for the most current information available. Other Tax Credits for Homeowners: In addition to these homeowner tax credits, a separate tax credit for solar hot water systems is available. these credits are not limited to the $500 cap. Consumers can earn a tax credit up to 30% of the cost ($2,000 max lifetime) for installing PV on solar hot-water systems used exclusively for purposes other than heating swimming pools and hot tubs. The system must use solar power to provide at least half of a home's hot water. In addition, the water must be used in the dwelling and the system must be certified by the Solar Rating and Certification Corporation (SRCC). there is also a consumer tax credit of up to 30% of the cost (up to $500 per 0.5 kW of capacity maximum) for installing a "qualified" fuel cell unit. The credits are available for 2006, 2007 and 2008. |
CALL TODAY FOR MORE INFORMATION FROM YOUR LOCAL COOPERATIVE'S "Energy Advisor". |
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