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Can I get a tax credit for my new heat pump?

For many families, there typically seems to be a long list of home to-do’s that they would like to get done or new ideas they’d like to attempt. While some may not be required, buying a new heat pump is one project that could be key to keeping your indoor space comfortable during the chillier months in Opelika.

Selecting a new heat pump is a sizeable investment. You’ll definitely notice the return-on-investment on your indoor comfort as well as your energy bills, but it may be a tad overwhelming at first. The good news is that when you pick a new energy-efficient heat pump, you might be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were extended through December 31, 2020. In order to get the tax credit, you must buy a heat pump that has earned the ENERGY STAR label. When researching heat pumps, look for solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency heat pump.

At Farnell Mechanical, Inc., we’ll help you find a solution that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm the heat pump you select has the following requirements.

For Split Systems:

  • Heating Seasonal Performance Factor (HSPF): 8.5 or higher
  • Energy Efficiency Ratio (EER): 12.5 or higher
  • Seasonal Energy Efficiency Ratio (SEER): 15 or higher

 

For Package Systems:

  • HSPF: 8 or higher
  • EER: 12 or higher
  • SEER: 14 or higher

 

This tax credit won’t be the only savings you’ll observe when you get a new high-efficiency heat pump. Many of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And the family will also have higher confidence in your HVAC system to keep your house at just the right temp.

Whether you have questions about your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency heat pump, give our team at Farnell Mechanical, Inc. a call at 334-245-4748. You may also visit ENERGY STAR or reach out to your local utility company if you have questions about other eligible home products.

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