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

For a lot of households, there always seems to be a long list of home improvement to-do’s that they need to achieve or new ideas they’d like to attempt. While a few may not be necessities, buying a new heat pump is one job that could be critical to keeping your house comfortable throughout the cooler months in Mobile.

Getting a new heat pump is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a tad intimidating at first. The good news is that when you pick a new energy-efficient heat pump, you could be qualified for a federal tax credit.

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

At Farnell Heating & Air Conditioning Inc, our team will help you find a solution that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you should confirm the heat pump you purchase 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 receive when you select a new high-efficiency heat pump. Some of the most efficient solutions can save you hundreds of dollars on your utility costs during the year. And the family will also have more confidence in your HVAC system to keep your house at just the right comfort level.

Whether you have questions regarding your eligibility for a tax credit, or if there are other local savings you may be eligible for by installing a new high-efficiency heat pump, give our pros at Farnell Heating & Air Conditioning Inc a call at 251-471-2674. You could also visit ENERGY STAR or reach out to your local utility organization if you have questions about other eligible home products.

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