There’s never been a better time to install new air conditioning and heating than right now. On January 2, 2013, President Obama signed legislation to extend the 25C tax credits which had expired on December 31, 2011. These credits give homeowners a tax break on energy efficient home improvements. Furnaces, heat pumps, air conditioners and water heaters qualify for the deduction as long as they meet certain product efficiency requirements.

The tax credit reinstatement is retroactive, so if you installed energy-efficient heating or cooling equipment in 2012, you can claim the credits when you file your taxes in April. Taking advantage of the tax credit this year can substantially reduce the cost of heating and cooling installations, but you must act before December 31, 2013.

Is It Time For A New Air Conditioning Or Heating System?

If your heat pump, furnace or air conditioner is showing signs of age, this is the time to replace it. Upgrading your heating and cooling system now will save you the trouble of dealing with breakdown at an inconvenient time. You’ll also get the tax break to offset your installation costs.

How Do I Know If My HVAC System Needs Replacement?

There are telltale signs that can let you know when your heat pump, furnace or air conditioner is nearing the end of its lifespan. If your HVAC system is showing any of the following symptoms, it may not last much longer:

  • System is over ten years old
  • Furnace, heat pump or air conditioner needs frequent repairs
  • HVAC equipment is making odd or unusual noises
  • Some rooms are too hot, others are too cold
  • Indoor air temperature does not match thermostat setting
  • System frequently cycles on and off
  • Heater or air conditioner has not been well-maintained
  • Utility bills are increasing every month

Are There Other Reasons For An Energy-Efficient HVAC Upgrade?

Yes! The heating and cooling systems of today are much more efficient than heaters and air conditioners of just a few years ago. The more efficient the system, the less energy it requires, the better its performance, and the more you’ll save on monthly utility bills.

The efficiency of an air conditioner is determined by its EER rating. EER stands for Energy Efficiency Ratio and measures the cooling capacity of the unit. The efficiency of a heat pump is determined by its SEER rating. SEER stands for Seasonal Energy Efficiency Ratio and measures the performance of a heat pump. The efficiency of a furnace is measured by its AFUE rating. AFUE stands for Annual Fuel Utilization Efficiency and measures heating output. The higher the rating, the more efficient the product.

When you upgrade to a more efficient air conditioner, heat pump or furnace, you’ll not only enjoy more comfortable indoor air, you’ll pay less to have it. An energy-efficient upgrade may qualify you for financial benefits such as state, local and utility discounts. The dealer from whom you purchase your system may offer additional incentives like manufacturer’s rebates. Finally, you’ll have the satisfaction of knowing that by consuming less energy, you’ll be helping to conserve our planet’s natural resources.

How Much Can I Save With The 25C Tax Credits?

You can save up to $500 by taking advantage of multiple credits. Electric heat pump water heaters with an energy factor of 2.0 or above qualify for up to $300 in credits, as do gas, propane and oil water heaters with a thermal efficiency of at least 90 percent.

Furnaces and boilers (gas, propane and oil) with an AFUE of 95 percent or more qualify for up to $150 in tax credits. Main circulating air fans in furnaces qualify for $50 in tax credits if their annual energy usage does not exceed two percent of the yearly energy output of the furnace.

Air conditioners and heat pumps qualify for up to $300 in tax credits. The required SEER and EER ratings will vary according to the type of product you choose. Check with your HAVC dealer for the required efficiency ratings of the systems you are considering.

How Do I Claim The 25C Tax Credit?

You can claim the tax credit for 2012 if you installed a qualifying HVAC system last year. You can also claim the credit if you install a qualifying system before December 31, 2013. The system must be installed in your primary residence, and you must provide the IRS with Manufacturer’s Certification Statements to verify the required efficiency ratings. Visit the IRS ( for more information about claiming the credit.

Which HVAC Upgrades Would Be Best For Me?

Give us a call at Byrd Heating and Air Conditioning and we’ll be happy to provide more information about which type of new air conditioning or heating system would best fit your needs. We’ve been serving the Savannah GA community since 1986, and as a Factory Authorized Carrier Dealer, we hold to the highest standards in the industry.

Our experienced NATE-Certified technicians are well-versed in all the latest heating and cooling technologies. When you work with us, you can be sure that your energy-efficient heating or cooling installation will be properly and safely completed.

We stock a large variety of innovative Carrier products that fulfill the 25C tax credits requirements. Ask about our free in-home estimates. If you’re a senior citizen or in the military, you’ll qualify for a special discount, and we offer budget-friendly financing plans with low monthly payments.

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