Is your central air conditioning system on its last legs and in need of replacement? If so, you may be thinking about replacing the system with an Energy Star rated system so that you can save money on your energy bills in the summer. However, you may also receive a federal tax credit depending on the type of system that you purchase. Here is what you need to know about getting that tax credit for your upcoming purchase.
Determine If Your Property Is Eligible
When selecting an Energy Star rated air conditioner, you'll want to know if the property it is being installed at will even qualify for the tax credit. This is because it is common for the tax credit to only apply to primary residences, and only if you are upgrading from an older unit. This means that you will not be eligible if you are currently constructing a home and installing a new air conditioning unit for it. Second homes and rental properties also won't qualify for the federal tax credit, so don't count on receiving it for a summer vacation home or your old condo that you still rent out for extra income.
Purchase An Air Conditioner That Qualifies
While you may think all you need to do to receive a tax credit is purchase an Energy Star certified air conditioner, that is not always the case. While those certified units will help cut down on your energy bills, there are other factors that must be looked at if you want a tax credit. Make sure you understand what the current minimum requirements are for the EER and SEER ratings for your air conditioning system. For example, split systems must have an official SEER rating greater than 16, and an EER rating greater than 13.
Keep All The Documentation
Receiving the tax credit means that you need to have all the documentation to prove that you had a qualified air conditioner installed. This means you'll need to hold onto the receive for the central air conditioner unit itself, along with the proof that it was professionally-installed.
One of the benefits of working with an HVAC contractor is that they know all about the tax credits and rebates associated with air conditioners. They can let you know if you are purchasing a system that qualifies, and even gather all the documentation you need to receive the tax credit. For more information, contact a company like Extreme Climates.