Tax Credits For 2013: Make The Most Of These Savings

When the Congress passed legislation to avoid the fiscal cliff, it also resurrected the tax credit for installing energy-efficient heating and cooling equipment. The credit covers qualifying equipment purchased and installed from January 1, 2012, through December 31, 2013. The type of equipment and the minimum efficiency standards they must have include:

• Furnaces and boilers. These appliances must have a 95 percent AFUE (annual fuel utilization efficiency). The current minimum for combustion furnaces is 78 percent AFUE, which means that they waste 22 percent of the fuel they consume. A 95 percent efficiency furnace wastes just 5 percent of the fuel, which lowers consumption substantially.

• Heat pumps. The minimum SEER for qualifying heat pumps is 15 and the minimum HSPF (heating seasonal performance factor) has to be 8.5 or higher to qualify for the tax credit.

• Air conditioners. Package air conditioners must have a minimum SEER (seasonal energy efficiency ratio) rating of 14. A package system is one that combines the heating and cooling in a single unit and is located either on the roof or in the yard. A split-system air conditioner must have a SEER of at least 16. The current minimum for all central air conditioners stands at 13.

• Fans for air handlers. A high-efficiency fan in the air handler qualifies for a credit, as long as it doesn't consume more than 2 percent of the total energy that the furnace, air conditioner or heat pump uses.

There are some other criteria, such as minimum EER ratings to go along with the above.  If you have any questions, our experts can help.

The credits for air conditioners and heat pumps have a limit of $300, while the maximum for furnaces is $150. A high-efficiency fan qualifies for a credit of $50. Under this particular program (25C), taxpayers can only claim $500 total tax credits for the period from 2005 through the end of 2013.   And Geothermal units still qualify for a 30% no limit tax credit that is still good through 2016.The credits help offset the cost of installing high efficiency HVAC equipment, which helps homeowners start enjoying lower utility bills faster. If you would like more information about taking advantage of the 25C program and taking a tax credit, contact Air Assurance. We've provided HVAC services for the Broken Arrow region for nearly 30 years.Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems). Image courtesy of Shutterstock

Forced-Air Furnaces: Understand How They Work Before You Buy

Forced-air furnaces are one of the most common and popular choices for heating your home, and with good reason. Forced-air furnaces are the most energy-efficient and comprehensive choice for keeping your home toasty in winter. Learning how these furnaces work can help you choose the right model for your home.

A forced-air furnace works by burning gas in the heat exchanger. A fan blows air across this exchanger, heating the air and then sending it through the air ducts into your home. When the gas is completely combusted, the flue gases move through the heat exchanger and are vented outside the home.

Efficiency levels

Forced-air furnaces come in two main types, an 80 percent efficiency model and a 90-plus efficiency model. The difference between the two lies in the way that they process and vent combustion air. An 80 percent furnace has one heat exchanger, and connects to your existing flue pipe or chimney to vent 20 percent of the air outside the house, keeping 80 percent of the heated air indoors. A 90-plus furnace has two heat exchangers, using outside air for combustion and venting less than 10 percent outside the home.

Burner settings

Of these two  efficiency models, there are single-stage, two-stage, and modulating furnaces available. "Single-stage" means that the burner uses only one level of heat, "on" or "off." "Two-stage" furnaces have a microprocessor that controls a burner using two levels of heat, high and low. A modulating gas furnace does not come in 80 percent or 90-plus models, but operates at 95 percent or above. These furnaces use a microprocessor to regulate the burner at variable levels, adjusting accordingly to use the least energy possible for the optimum output of heat.

Blower speeds

Furnaces also have two blower speeds. A standard blower blows at a fixed speed and regularity, while a variable-speed will save you money on your electricity bill by adjusting to the heating needs of the house, often improving air circulation and maintaining steadier indoor temperatures.

For more information on furnaces and other home comfort needs, contact Air Assurance, serving the Tulsa area since 1985.Our goal is to help educate our customers in the Tulsa and Broken Arrow, Oklahoma area about energy and home comfort issues (specific to HVAC systems). Image courtesy of Shutterstock

Take Advantage Of Two Rebate Programs To Drive Down The Final Cost Of Your High-Efficiency Air Conditioning

Over the past few years, the media has made a pretty big deal about government tax credits that have made upgrading to energy-efficient equipment a reality with increased savings. However, you may not have heard as much about other rebates from manufacturers and utility companies that you can access when upgrading to high-efficiency air-conditioning systems. For many homeowners, these combined rebates can often mean the difference between upgrading and maintaining the status quo.The Public Service Company of Oklahoma offers rebates of $100 to $600, depending on the size and Seasonal Energy Efficiency Ratio (SEER) of your high-efficiency air conditioner or heat pump. Larger systems and higher SEER ratings get bigger incentives and rebates. The guidelines restrict the incentive to a replacement system that uses the same (current) energy source for residential (single or multi-family) homes and small commercial buildings.  They also offer incentives of up to $1500 for an entire home performance upgrades which include duct sealing, insulation, radiant barriers, home envelope sealing, etc.Lennox, a manufacturer of heating and cooling equipment, indoor air quality products, and comfort controls, also offers savings on energy-efficient products. High-efficiency air-conditioning or heat-pump systems qualify for up to $1,400 when combined with a thermostat and indoor air quality system.High-efficiency air conditioners make energy savings possible for Oklahoma homeowners. While they often cost more up-front, incentives make them more affordable. High-efficiency systems are rated SEER 16 to 23 and have a low lifetime cost. Lifetime cost takes into account the spending a system requires over the course of its life. This takes into account regular preventive maintenance costs, fuel costs, and repairs. With the energy savings that high-efficiency systems get, you get a relatively quick return on your investment and save on monthly utility bills long after you’ve paid for the system.Why not take advantage of combined rebates from every avenue possible, to drive down the cost and make your new system replacement happen? The experts at Air Assurance can assess your home’s needs, assist you in selecting an A/C, and help you take advantage of manufacturer and utility company incentives to get you the maximum savings possible. Call us today.Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems).  For more information, click here. Air Assurance services Tulsa, Broken Arrow and the surrounding areas. To get started, check out our website or see our current promotions.