Federal Tax Credits for Energy Efficient HVAC Systems in Columbus OH

If you live in a place like Columbus, OH that experiences all four seasons, heating and cooling your Columbus home may account for a significant portion of your annual energy bills. Although most homeowners would be happy to see a monthly decrease in their utility spending, many hesitate to replace their HVAC system because they think that the appliances or the installation will be too expensive. But since Congress recently reinstated the 25C federal tax credit, more people can now afford to install energy-efficient equipment.


25C Tax Credit Basics
This credit allows homeowners to deduct 10% of the cost of replacing their HVAC system, up to a total of $500. Though it originally expired on December 31, 2011, the new legislation retroactively extended the qualifying period from January 1st, 2012 to December 31st, 2013. So, whether you’ve replaced your system in the past year or plan to this year, you may be eligible. However, the 25C tax credit does not apply to every single furnace, air conditioner, and boiler available on the market. In order to qualify for the deduction, homeowners must purchase appliances with certain minimum energy-efficiency ratings.

Qualifying Air Conditioners
Each new air conditioner receives a Seasonal Energy Efficiency Ratio (SEER), which tells you how much of the electrical energy the unit uses is converted into cooling output. Since 2006, all new units must have a minimum SEER of 13, but in order to qualify for the 25C tax credit, your unit must meet stricter standards. The air conditioners in package systems must have a SEER no less than 14, while units that are part of split systems must have a SEER no less than 16.

Qualifying Heating Systems
Because heating systems use a variety of different fuels, their efficiency is expressed as a number called the Annual Fuel Utilization Efficiency (AFUE). The AFUE tells you what percentage of the fuel the unit burned was actually converted to heat. Oil-fired and electric furnaces must have a minimum AFUE of 78%. In order to qualify for 25C tax credits, systems must meet a more stringent standard: They must have a minimum
AFUE of 95%.

Qualifying Heat Pumps
Heat pumps, which simply move thermal energy from one area to another, can both warm up and cool down your home. Heat pumps thus receive two efficiency ratings: SEER for their summer efficiency and Heating Season Performance Factor (HSPF) for their winter efficiency. Package heat pumps that qualify for the tax credit must have a minimum SEER of 14 and HSPF of 8, while split systems must have a minimum SEER of 15 and HSPF of 8.5.

To get see if you qualify to get this tax credit you should have your accountant help you fill out the necessary paperwork, and you should consult a qualified HVAC expert in Columbus who can help you find qualifying systems within your budget. Visit our website to learn more about the energy efficient heating and cooling systems we offer in Columbus, OH and the surrounding communities.